The Persistence of Current Account Balances and its Determinants: The Implications for Global Rebalancing
43 Pages Posted: 18 Dec 2012
Date Written: December 17, 2012
This paper examines the statistical nature of the persistency of current account balances and its determinants. With the assumption that stationary current account series ensures the long-run budget constraint while countries may experience 'local non-stationarity' in current account balances, the authors examine the dynamics of current account balances across a panel of 70 countries.
Keywords: current account, financial liberalization, global imbalances, capital controls
JEL Classification: F32, F41
Suggested Citation: Suggested Citation