The Persistence of Current Account Balances and its Determinants: The Implications for Global Rebalancing
43 Pages Posted: 18 Dec 2012
Date Written: December 17, 2012
Abstract
This paper examines the statistical nature of the persistency of current account balances and its determinants. With the assumption that stationary current account series ensures the long-run budget constraint while countries may experience 'local non-stationarity' in current account balances, the authors examine the dynamics of current account balances across a panel of 70 countries.
Keywords: current account, financial liberalization, global imbalances, capital controls
JEL Classification: F32, F41
Suggested Citation: Suggested Citation
Clower, Erica and Ito, Hiro, The Persistence of Current Account Balances and its Determinants: The Implications for Global Rebalancing (December 17, 2012). ADBI Working Paper No. 400, Available at SSRN: https://ssrn.com/abstract=2190266 or http://dx.doi.org/10.2139/ssrn.2190266
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