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We incorporate trade imbalances into a quantitative model of bilateral trade in manufactures, dividing the world into … welfare would differ in a counterfactual world with all current accounts balancing. Our results indicate that closing the …
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"This paper studies the association between the current account and real estate valuation across countries, subject to data availability [43 countries, of which 25 are OECD], during 1990-2005. We find robust and strong positive association between current account deficits and the appreciation of...
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