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Productivity Shocks, Budget Deficits and the Current Account

Bussière, Matthieu; Fratzscher, Marcel; Müller, Gernot J. - 2021

Deficits discussion of the 1980s. In contrast, during the 1990s productivity growth has been identified as the primary cause of … importance of budget deficits and productivity shocks for the determination of the current account. Using a sample of 21 OECD … current account, while country-specific productivity shocks appear to play a key role …

Persistent link: https://www.econbiz.de/10013318453

The Terms of Trade, Productivity Growth and the Current Account

Iscan, Talan - 2001

-192) to an economy with traded and nontraded goods, and it analyzes the impact of country-specific and global productivity … investment to country-specific traded productivity growth. Second, global traded productivity and country-specific nontraded … productivity growth have no effect on the current account, but they have a significant impact on investment. Third, the global …

Persistent link: https://www.econbiz.de/10014140761

Sovereign default risk premia and state-dependent twin deficits : conference paper

Hürtgen, Patrick; Rühmkorf, Ronald - 2013 - This version: August 7, 2013

This paper studies the impact of the state-dependent risk of a government default on the correlation of the scal balance and current account. We use a small open economy model where nonlinear risk premia arise endogenously when the government operates close to its scal limit, i.e. the maximum...

Persistent link: https://www.econbiz.de/10010341080

The modality of fiscal consolidation and current account adjustment : presented at CESifo, Delphi Conference on Current Account Adjustments, May 2015

Adam, Antonis; Moutos, Thomas - 2015

In this paper we argue that supply-side adjustments (i.e. the reallocation of productive resources between the traded and non-traded sectors) can be an important determinant of the output costs of current account adjustment. The argument relies on the fact that tax evasion is more prevalent in...

Persistent link: https://www.econbiz.de/10011300383

Postponing Global Adjustment : An Analysis of the Pending Adjustment of Global Imbalances

Truman, Edwin M. - 2005

Halving the US current account deficit as a share of GDP is likely to impose a burden of $2,350 per capita on the United States, which explains why US policymakers want to postpone adjustment. The rest of the world relies on the economic stimulus of a widening US external deficit, which explains...

Persistent link: https://www.econbiz.de/10014063503

Currency Manipulation, Saving Manipulation, and the Current Account Balance

Sumner, Scott - 2020

Concern over currency manipulation plays a major role in international economic diplomacy. Unfortunately, the concept is not well defined, and the most coherent explanations apply to a concept more accurately termed “saving manipulation,” as it has little to do with market exchange rates. I...

Persistent link: https://www.econbiz.de/10012840489

Fiscal Policies, the Current Account and Ricardian Equivalence

Nickel, Christiane - 2008

This paper analyses the empirical relationship between fiscal policy and the current account of the balance of payments and considers how Ricardian equivalence changes this relationship. To do so, we estimate a dynamic panel threshold model for 22 industrialised countries in which the...

Persistent link: https://www.econbiz.de/10012770620

Budget Deficit Persistence and the Twin Deficits Hypothesis

Normandin, Michel - 1998

This paper gauges the causal relationship between external and budget deficits by using Blanchard's overlapping generations model. This model tests the twin deficits hypothesis (i.e., there is a positive relationship between the deficits) and the Ricardian equivalence hypothesis (i.e., there is...

Persistent link: https://www.econbiz.de/10014109550

Terms of Trade Shocks and the Current Account

Cashin, Paul Anthony - 2006

This paper examines the relationship between terms of trade shocks, private saving, and the current account position. The relationship between these variables is theoretically ambiguous: an adverse transitory terms of trade shock can either induce a deterioration or an improvement in the current...

Persistent link: https://www.econbiz.de/10012781565

Transfer Problem Dynamics : Macroeconomics of the Franco-Prussian War Indemnity

Devereux, Michael B.; Smith, Gregor W. - 2022

productivity over the period, the model provides a very close fit to the historical sample path. This makes a strong case for the …

Persistent link: https://www.econbiz.de/10013291992