A Financial Analysis of the Economic Effects of Having to Reverse Current Account Deficits
Austin Murphy
Oakland University - School of Business Administration
2003
PRACTICAL FINANCIAL ECONOMICS, Praeger, 2003
Abstract:
This research develops a theoretical model of current account deficits that explains the effects of having to reverse such imbalances. The theory defines precise mathematical relationships which should exist between the balance of payments, exchange rates, interest rates, inflation, income, and investor expectations. The model is consistent with both currency crises and less volatile situations.
Number of Pages in PDF File: 48
JEL Classification: F32
Accepted Paper Series
Suggested Citation
Murphy, Austin, A Financial Analysis of the Economic Effects of Having to Reverse Current Account Deficits (2003). PRACTICAL FINANCIAL ECONOMICS, Praeger, 2003. Available at SSRN: http://ssrn.com/abstract=215629 or http://dx.doi.org/10.2139/ssrn.215629
