A number of developing countries have run large and persistent current account deficits in both the late seventies/early eighties and in the early nineties, raising the issue of whether these persistent imbalances are sustainable. This paper puts forward a notion of current account...

As a result of the COVID crisis, managing the systemic risks that originate from sharp reversals or “sudden stops” in capital inflows, while reaping their benefits, needs a careful calibration of macroeconomic policy instruments. Using panel regressions with country-fixed effects, this paper...