On Cyclicality in the Current and Financial Accounts : Evidence from Nine Industrial Countries / Jens Clausen, Magda Kandil.

Format:

Book

Government document

Author/Creator:

Clausen, Jens.

Contributor:

Kandil, Magda.

International Monetary Fund. Monetary and Financial Systems Department.

IMF Institute.

Series:

IMF Working Papers; Working Paper ; No. 2005/056

IMF Working Papers

Language:

English

Subjects (All):

Balance of payments.

Physical Description:

1 online resource (40 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2005.

Language Note:

English

Summary:

The paper investigates cyclical fluctuations in the current and financial (formerly capital) accounts of the balance of payments and major underlying components for nine industrial countries. The empirical model uses as explanatory variables domestic output growth, price inflation, real exchange rate fluctuations, energy price inflation, global growth, and regional growth. The evidence from the estimation of the model indicates the importance of fluctuations in output growth to the cyclicality of the current and financial account balances. The necessary and sufficient condition to sustain a large current account deficit is high domestic growth, which tends to stimulate financial inflows and provides adequate resources for financing. Other factors appear to be less important to the cyclicality of the current and financial account balances and their negative correlations.

Contents:

""Contents""; ""I. INTRODUCTION""; ""II. ANALYSIS OF CURRENT ACCOUNT DATA BY COUNTRY""; ""III. MODELING CYCLICAL EFFECTS ON THE BALANCE OF PAYMENTS""; ""A. The Current Account""; ""B. The Financial Account""; ""C. The Relation between the Current and Financial Accounts""; ""D. Empirical Investigation""; ""E. Non-Stationarity and Cointegration Analysis""; ""F. Analysis of Cyclical Fluctuations""; ""IV. RESULTS FROM REDUCED FORM EQUATIONS""; ""A. Determinants of Fluctuations in the Current Account Balance""; ""B. Determinants of Fluctuations in the Financial Balance""

""V. ON CORRELATION BETWEEN FINANCIAL AND CURRENT ACCOUNTS""""A. Cyclical Correlations Between Current and Financial Accounts""; ""B. Correlations between Estimated Parameters for the Current and Financial Balances""; ""VI. SUMMARY AND CONCLUSIONS""; ""ECONOMETRIC METHODOLOGY""; ""DATA DESCRIPTION AND SOURCES""; ""REFERENCES""

Notes:

"March 2005."

Includes bibliographical references (p. 36-39).

Description based on print version record.

ISBN:

9786613795632

9781462322596

146232259X

9781451996449

1451996446

9781282003415

1282003410

9781451906110

1451906110

OCLC:

314189466

Publisher Number:

250999 CaOOCEL (Public Documents)