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The Current Account and the New Rule in a Not-So-Small Open Economy

Erauskin-Iurrita, Iñaki - 2008

Recent studies have challenged the standard version of the intertemporal approach to the current account. According to the new rule, the impact of transitory income shocks on the current account is equal to the saving generated by the shock multiplied by the country's share of foreign assets in...

Persistent link: https://www.econbiz.de/10012723150

What Drives the Current Account in Commodity Exporting Countries? The Cases of Chile and New Zealand

Medina, Juan Pablo; Munro, Anella; Soto, Claudio - 2013

This paper uses an open economy DSGE model with a commodity sector and nominal and real rigidities to ask what factors account for current account developments in two small commodity exporting countries. We estimate the model, using Bayesian techniques, on Chilean and on New Zealand data, and...

Persistent link: https://www.econbiz.de/10014218884

Chapter 12. International Financial Crises

Lorenzoni, Guido - In: Handbook of international economics : Volume 4, (pp. 689-740). 2014

This chapter surveys recent research on international financial crises. A financial crisis is characterized by a sudden, dramatic outflow of financial resources from an economy with an open capital account. This outflow may be primarily driven by the expectation of a large nominal devaluation,...

Persistent link: https://www.econbiz.de/10014025374

Long-Term Trends in the Saving-Investment Balance and Persistent Current Account Surpluses in a Small Open Economy : The Case of the Netherlands

Halikias, Ioannis - 2006

This paper explores, from an investment-saving perspective, the factors underlying the persistent widening of the current account surplus in the Netherlands since the early 1980s. Standard intertemporal models, even appropriately extended to incorporate specific features of the Dutch economy, do...

Persistent link: https://www.econbiz.de/10012782056

Estimating the Parameters of a Small Open Economy DSGE Model : Identifiability and Inferential Validity

Beltran, Daniel O.; Draper, David - 2008

This paper estimates the parameters of a stylized dynamic stochastic general equilibrium model using maximum likelihood and Bayesian methods, paying special attention to the issue of weak parameter identification. Given the model and the available data, the posterior estimates of the weakly...

Persistent link: https://www.econbiz.de/10014212315

Canada's pioneering experience with a flexible exchange rate in the 1950s : (hard) lessons learned for monetary policy in a small open economy

Bordo, Michael D. (contributor); Dib, Ali (contributor); … - 2007

This paper revisits Canada's pioneering experience with floating exchange rate over the period 19501962. It examines … whether the floating rate was the best option for Canada in the 1950s by developing and estimating a New Keynesian small open … that monetary policy was more volatile in the post-1957 period and Canada's macroeconomic performance suffered as a result …

Persistent link: https://www.econbiz.de/10003560550

Deregulation and the Current Account

Harms, Philipp - 2002

We use a dynamic general-equilibrium model to study how removing barriers to competition in the nontraded goods sector affects the current account of a small open economy. We show that the expansion of the nontraded sector that results from such a "deregulation shock" is associated with an...

Persistent link: https://www.econbiz.de/10011430037

Importzoll, Beschäftigung und Leistungsbilanz: ein mikrofundierter Ansatz

Bleich, Torsten - 2004

Der vorliegende Beitrag untersucht die Wirkungen eines Importzolls auf die Beschäftigung und die Leistungsbilanz der … Fundierung des verwendeten Modells im Mittelpunkt. Die Wirkungen eines Importzolls auf die Beschäftigung und die Leistungsbilanz … Beschäftigung. Der Importzoll verbessert die Leistungsbilanz. …

Persistent link: https://www.econbiz.de/10010263430

A simple aggregate demand analysis with dynamic optimization in a small open economy

Hashimoto, Ken'ichi; Ono, Yoshiyasu - 2019

We develop an aggregate demand analysis of a small open economy based on all agents' dynamic optimization. Murota and Ono (2015) present a simple Keynesian cross analysis with dynamic optimization. This paper extends it to a small-country setting with two factors and two commodities, of which...

Persistent link: https://www.econbiz.de/10012035945

Tariffs, time preference, and the current account under weakly nonseparable preferences

Ikeda, Shinsuke - 2000

Incorporating weakly nonseparable preferences into the familiar time-preference model, we emphasize a role of steady-state welfare changes in determining the effect of permanent tariffs on the current account. The effect consists of: a welfare effect, due to steady-state welfare changes, which...

Persistent link: https://www.econbiz.de/10001546476