Current account balances, exchange rates, and fundamental properties of Walrasian CGE world models: A pedagogical exposition (Supplementary files)

2017 ◽  
Vol 2 (1) ◽  
Author(s):  
André Lemelin
Keyword(s):  
Exchange Rates ◽  
Current Account ◽  
Fundamental Properties ◽  
Current Account Balances

2014 Pilot External Sector Report - Individual Economy Assessments

Policy Papers ◽  
2014 ◽  
Vol 2014 (34) ◽  
Author(s):  
Keyword(s):  
Exchange Rates ◽  
Current Account ◽  
Real Exchange Rates ◽  
International Reserves ◽  
Balance Assessment ◽  
Assessment Approach ◽  
External Sector ◽  
Individual Economy ◽  
Current Account Balances

The external sector assessments use a range of methods and metrics, including the External Balance Assessment approach developed by the IMF’s Research Department to estimate desirable levels of current account balances and real exchange rates (Box 3 of the 2014 Pilot External Sector Report discusses the use of this methodology). The overall assessments of external positions are based on the judgment of IMF staff drawing on the inputs provided by these model estimates and other analysis, including assessment of international reserves holdings, while taking account of relevant uncertainties. The assessments, which are multilaterally consistent, highlight the role of policies in shaping external positions.

Current account balances in Central America 1974–1984: external and domestic influences

1987 ◽  
Vol 19 (1) ◽  
pp. 87-111 ◽  
Author(s):  
William Loehr
Keyword(s):  
Exchange Rates ◽  
Interest Rates ◽  
Current Account ◽  
Real Exchange Rates ◽  
Developed Countries ◽  
Central American ◽  
Budget Deficits ◽  
External Variables ◽  
The Developed Countries ◽  
Current Account Balances

SummaryThis paper examines the sensitivity of current account balances to several important variables. Variables are classified as external and domestic. External variables are those over which Central American countries have little or no control. In this study external variables are real interest rates in world capital markets, the terms of trade, and growth in the developed countries. Low real interest rates, improved terms of trade and rapid growth in the developed countries would be expected to improve current account balances. Domestic variables include budget deficits and real exchange rates. These are factors over which Central American countries do have control. Budget deficits and appreciations of real exchange rates can be expected to cause deteriorations in current account balances.

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