05958oam 22010934 450 991077922570332120230802005345.01-4755-4443-X1-4755-7854-7(CKB)2550000000106189(EBL)1606685(SSID)ssj0000953015(PQKBManifestationID)11551736(PQKBTitleCode)TC0000953015(PQKBWorkID)10906683(PQKB)11728340(MiAaPQ)EBC1606685(Au-PeEL)EBL1606685(CaPaEBR)ebr10566359(OCoLC)787873270(IMF)WPIEE2012098(IMF)WPIEA2012098(EXLCZ)99255000000010618920020129d2012 uf 0engurcn|||||||||txtccrFinancial Regulation and the Current Account /Tomasz Wieladek, Sergi LanauWashington, D.C. :International Monetary Fund,2012.1 online resource (53 p.)IMF Working Papers"April 2012".1-4755-2606-7 1-4755-0288-5 Includes bibliographical references.Cover; Contents; I. Introduction; II. Theory; A. How does financial regulation affect the response of the current account to output shocks?; III. Empirical methodology and data; A. General methodology; B. Identification of net output shocks; Tables; 1. Sign restrictions; C. Estimation and inference; D. Data; IV. Empirical results; 2. Country sample; A. Robustness; V. Conclusion; References; Appendix; A. Appendix; A.1. Deriving the linearized budget constraint; A.2. Derivation of the current account reaction function with external habits and a constant world real interest rateA.3. Derivation of the current account reaction function with internal habits and a constant world real interest rate A.4. Derivation of the current account reaction function under a stochastic time-varying world real interest rate and no habitual consumption; Figures; 1. Size of current account imbalances; 2. Financial deregulation index; 3. Current account persistence; 4. Impulse response functions to log level net output shock - financial regulation; 5. Impulse response functions to log difference net output shock - financial regulation6. Impulse response functions to log level net output shock - capital account openness 7. Impulse response functions to log difference net output shock - capital account openness; 8. Impulse response functions to log level output shock - financial regulation controlling for fx regime; 9. Impulse response functions to log difference output shock - financial regulation controlling for fx regime; 10. Impulse response functions to log level output shock - capital account openness controlling for fx regime11. Impulse response functions to log difference output shock - capital account openness controlling for fx regime 12. Histogram of the square root of λThis paper examines the relationship between financial regulation and the current account in an intertemporal model of the current account where financial regulation affects the current account through liquidity constraints. Greater liquidity constraints decrease the size and persistence of the current account response to a net output shock. The theory is tested with an interacted panel VAR model where the coefficients are allowed to vary with the degree of financial regulation. The current account reaction to an output shock is 60% larger and substantially more persistent in a country with low financial regulation than in one with high financial regulation.IMF Working Papers; Working Paper ;No. 2012/098Balance of paymentsMathematical modelsFiscal policyMathematical modelsFinance, PublicEconometric modelsExports and ImportsimfFinance: GeneralimfCurrent Account AdjustmentimfShort-term Capital MovementsimfOpen Economy MacroeconomicsimfFinancial Institutions and Services: Government Policy and RegulationimfPortfolio ChoiceimfInvestment DecisionsimfInternational economicsimfFinanceimfCurrent accountimfCapital accountimfLiquidityimfCurrent account imbalancesimfCurrent account deficitsimfBalance of paymentsimfAsset and liability managementimfEconomicsimfUnited StatesimfBalance of paymentsMathematical models.Fiscal policyMathematical models.Finance, PublicEconometric models.Exports and ImportsFinance: GeneralCurrent Account AdjustmentShort-term Capital MovementsOpen Economy MacroeconomicsFinancial Institutions and Services: Government Policy and RegulationPortfolio ChoiceInvestment DecisionsInternational economicsFinanceCurrent accountCapital accountLiquidityCurrent account imbalancesCurrent account deficitsBalance of paymentsAsset and liability managementEconomicsWieladek Tomasz1522944Lanau Sergi1522945International Monetary Fund.DcWaIMFBOOK9910779225703321Financial Regulation and the Current Account3762942UNINA