Bussière, Matthieu; Fratzscher, Marcel; Müller, Gernot J. - In: Journal of International Money and Finance 29 (2010) 8, pp. 1562-1579
Productivity shocks and budget deficits are considered to be two key determinants of the current account. In order to assess formally the role of both factors in driving current account movements, the present paper extends the standard intertemporal model of the current account to allow for...