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China's Current Account and Exchange Rate

Cheung, Yin-Wong - 2010

We examine whether the Chinese exchange rate is misaligned and how Chinese trade flows respond to the exchange rate and to economic activity. We find, first, that the Chinese currency, the renminbi (RMB), is substantially below the value predicted by estimates based upon a cross-country sample,...

Persistent link: https://www.econbiz.de/10012757953

Portfolio Diversification, Real Interest Rates, and the Balance of Payments

osler, carol - 2010

The paper shows that differences in real interest rates across countries can arise even with perfect competition and fully integrated international capital markets. Specifically, we find that factor returns will differ across countries which are identical except for differences in technological...

Persistent link: https://www.econbiz.de/10012760240

International Reserves Management and the Current Account

Aizenman, Joshua - 2010

in turbulent times, mitigating the impact of external adverse shocks and allowing for a smoother current account …

Persistent link: https://www.econbiz.de/10012760512

International Finance

Obstfeld, Maurice - 2015

on the proper definition of external balance. Since the first descriptions of the price-specie-flow mechanism in Humes … time, the definition of external balance has evolved in response to changes in the world economy's structure. The foreign … budget surplus, a working definition of external balance might be a current account that maintains the highest possible …

Persistent link: https://www.econbiz.de/10012750759

Balance-Sheet Diversification in General Equilibrium : Identification and Network Effects

Heipertz, Jonas - 2017

The paper uses disaggregated data on asset holdings and liabilities to estimate a general equilibrium model where each institution determines the diversification and size of the asset and liability sides of its balance-sheet. The model endogenously generates two types of financial networks: (i)...

Persistent link: https://www.econbiz.de/10012951889

The Balance of Payments and Borrowing Constraints : An Alternative View of the Mexican Crisis

Atkeson, Andrew; Rios-Rull, José-Victor - 2022

In standard models of the balance of payments, crises occur when investors begin to doubt the credibility of the government's commitment to its exchange rate policy. In this paper, we develop an alternative model in which balance of payments crises occur even if the credibility of government...

Persistent link: https://www.econbiz.de/10014158695

Trending Current Accounts

Choi, Horag - 2010

Trending current accounts pose a challenge for intertemporal open-economy macro models. This paper shows that a two-country representative-agent business cycle model is able to explain the historical time-paths of the US and Japanese current accounts, both of which display trends but in opposite...

Persistent link: https://www.econbiz.de/10013151370

External Capital Structures and Oil Price Volatility

Burger, John D. - 2010

We assess the extent to which a country's external capital structure can aid in mitigating the macroeconomic impact of … oil-exporter (Trinidad and Tobago). From a risk-sharing perspective, a desirable external capital structure is one that …, through international capital gains and losses, helps offset responses of the current account balance to external shocks. We …

Persistent link: https://www.econbiz.de/10013142546

U.S. Foreign Trade and the Balance of Payments, 1800-1913

Lipsey, Robert E. - 2022

This paper reviews the main developments in U.S. trade and the balance of payments from the first years of the 19th century to the first decade of the 20th. American export trade was dominated by agricultural and other resource products long after the majority of the labor force had shifted out...

Persistent link: https://www.econbiz.de/10013321577

Exchange Rate and Current Account Dynamics Under Rational Expectations : An Econometric Analysis

Papell, David H. - 2022

An econometric portfolio balance model of an open economy, incorporating exchange rate, price, and current account dynamics, is derived and estimated.The usual stability conditions do not guarantee a unique rational expectations solution, and several proposals for resolving this situation are...

Persistent link: https://www.econbiz.de/10013323582