Session I -- 1 The U.S. External Deficit: Its Causes and Persistence -- Commentary -- Commentary -- Commentary -- Session II -- 2 The Current Account and Macroeconomic Policy: An Econometric Analysis -- Commentary -- 3 The Impact of the U.S. Current Account Deficit on Other OECD Countries --...

Real GDP growth and real effective exchange rate (REER) appreciation appear cointegrated with the current and financial accounts of the U.S. balance of payments. On this basis, we estimate reduced form equations showing that expected changes and shocks to real GDP, the REER, energy prices, and...

This paper examines external adjustment in the United States, Japan and Germany from the perspective of net foreign asset positions. It asks two questions: What are, in the long run, the determinants of net foreign asset equilibrium? and: What are, in the short run, some of the adjustment...