Current Account Sustainability: Selected East Asian and Latin American Experiences
CEPR Discussion Paper Series No. 1509
Posted: 20 Mar 1997
Date Written: November 1996
A number of developing countries have run large and persistent current account deficits in both the late 1970s/ early 1980s and in the early 1990s, raising the issue of whether these persistent imbalances are sustainable. This paper puts forward a notion of current account sustainability and compares the experience of three Latin American countries --Chile, Colombia and Mexico--and three East Asian countries --Korea, Malaysia and Thailand. It identifies a number of potential sustainability indicators and discusses their usefulness in predicting external crises.
JEL Classification: F32, F34
Suggested Citation: Suggested Citation