Cover IMF Working Papers
Model of the U.S. Current Account
Author: International Monetary Fund
Series:
IMF Working Papers
Volume/Issue:
Volume 1988: Issue 027
Language:
English
Publication Date:
01 Jan 1988
DOI:
https://doi.org/10.5089/9781451981544.001
ISBN:
9781451981544
ISSN:
1018-5941
Pages:
34
Keywords:
WP; net; dollar; price; value; nonagricultural export price equation; price competitiveness; net effect; real value; liability position; merchandise trade balance; Merchandise export; effects of change; current account transaction; value of the dollar; price variable; dollar export; Exports; Current account balance; Trade balance; Current account; Personal income; Eastern Europe
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper presents an econometric model of U.S. current account transactions. The model is used to analyze the factors behind the deterioration in the U.S. external position during the 1980s and to examine the sensitivity of the U.S. current account balance to changes in factors which are its major determinants. The results suggest that the appreciation of the U.S. dollar and relatively faster economic growth in the United States account for most of the rise in the U.S. external deficit. The results also indicate that the depreciation of the dollar since March 1985 has contributed to a substantial improvement in the U.S. current account balance relative to what it otherwise might have been.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund