In this paper we develop a simple general equilibrium model of the current account net of factor services. The model takes explicitly into account the relation between the real exchange rate, the trade balance, output and expenditures. The model is estima

Hidden behind a number of economic crises in the mid- to late 1990s-including Argentina's headline-grabbing monetary and political upheaval-is that fact that Latin American economies have, generally speaking, improved dramatically in recent years. Their success has been due, in large part, to...

Since the debt crisis, many countries are still struggling to achieve a current account situation that is compatible with reduced external financing and a moderate but sustainable rate of output growth. A key element of a successful medium term strategy is to move resources into the export...