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Dominant Drivers of Current Account Dynamics

We estimate shocks that explain most of the variation in the current account at business cycle frequencies and over the long run. We then explore, using a standard open-economy macro model, which macroeconomic shocks are behind the empirical dominant drivers of the current account at business-cycle...

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Bibliographic Details
Main Author: Boer, Lukas
Other Authors: Lee, Jaewoo
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2024
Series:IMF Working Papers
Subjects:
Economic & Financial Crises & Disasters
Business Cycles
Short-term Capital Movements
Current Account
Dynamic Treatment Effect Models
Currency; Foreign Exchange
Economics: General
Current Account Adjustment
Balance Of Payments
Exports And Imports
Diffusion Processes
Informal Sector; Economics
International Economics
Nominal Effective Exchange Rate
Time-series Models
Economics Of Specific Sectors
Foreign Exchange
Cycles
Currency Crises
Economic Growth
Current Account Balance
Macroeconomics
Business Fluctuations
Dynamic Quantile Regressions
Prices, Business Fluctuations, And Cycles: General (includes Measurement And Data)
Exchange Rates
State Space Models
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary:We estimate shocks that explain most of the variation in the current account at business cycle frequencies and over the long run. We then explore, using a standard open-economy macro model, which macroeconomic shocks are behind the empirical dominant drivers of the current account at business-cycle frequency. Rather than financial shocks or aggregate shocks to supply or demand, shocks to the relative demand between home and foreign goods are found to play a pivotal role in current account dynamics
Physical Description:47 pages
ISBN:9798400274961

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