Interest Rates, Exchange Rates and Present Value Models of The Current Account  

Oleh:

Bergin, Paul R. ; Sheffrin, Steven M.

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: The Economic Journal (EBSCO) vol. 110 no. 463 (2000), page 535-558.
Topik: INTEREST RATES; interest rate; exchange rates; present value models; current account
Fulltext: 535.pdf (584.3KB)

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: EE28.2 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

Lihat Detail Induk

Isi artikel

This paper develops a testable intertemporal model of the current account that allows for variable interest rates and exchange rates. These additional variables are channels through which external shocks may influence the domestic current account. The restrictions from the theoretical model are subjected to present value tests using quarterly data from three small open economies. The paper finds that including the interest rate and exchange rate improves the fit of the intertemporal model over what was found in previous studies. The model predictions better replicate the volatility of current account data and better explain historical episodes of current account imbalance.

Opini Anda

Klik untuk menuliskan opini Anda tentang koleksi ini!

Kembali