The IMF Working Papers series is designed to make IMF staff research available to a wide audience. With nearly 300 released each year, working papers cover a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
Steven Phillips, Luis Catão, Luca Ricci, Rudolfs Bems, Mitali Das, Julian Di Giovanni, Filiz Unsal, Marola Castillo, Jungjin Lee, Jair Rodriguez, and Mauricio Vargas
INTERNATIONAL MONETARY FUND
The External Balance Assessment (EBA) methodology has been developed by the IMF's Research Department as a successor to the CGER methodology for assessing current accounts and exchange rates in a multilaterally consistent manner. Compared to other approaches, EBA emphasizes distinguishing between the positive empirical analysis and the normative assessment of current accounts and exchange rates, and highlights the roles of policies and policy distortions. This paper provides a comprehensive description and discussion of the 2013 version ('2.0') of the EBA methodology, including areas for its further development.