05350oam 22010934 450 991078834200332120230721045630.01-4623-3661-21-4527-0669-71-4518-7118-X97866128421151-282-84211-0(CKB)3170000000055152(EBL)1608083(SSID)ssj0000944124(PQKBManifestationID)11559074(PQKBTitleCode)TC0000944124(PQKBWorkID)10983807(PQKB)10498692(OCoLC)466114297(MiAaPQ)EBC1608083(IMF)WPIEE2008260(EXLCZ)99317000000005515220020129d2008 uf 0engur|n|---|||||txtccrFundamentals at Odds? The U.S. Current Account Deficit and The Dollar /Gian Milesi-FerrettiWashington, D.C. :International Monetary Fund,2008.1 online resource (31 p.)IMF Working PapersIMF working paper ;WP/08/260Description based upon print version of record.1-4519-1571-3 Includes bibliographical references.Contents; I. Introduction; II. The Current Account Balance and The International Investment Position; III. Some stylized Facts on the dollar and the U.S. current account; A. Two Dollar Cycle Episodes; B. A Comparison Between 2 Adjustment Episodes; IV. Reconciling Prices and Quantities; A. Is the REER Mismeasured? The WARP Argument; B. Is The U.S. Current Account Deficit Overstated?; C. Adjustment Lags; D. The Terms of Trade and Oil Prices; E. External Adjustment and Shift in Relative Prices; V. Conclusions; Tables; 1. Historical Patterns of U.S. Dollar Real Depreciations (1973-2008)2. Historical Patterns of U.S. Dollar Nominal Depreciations (1976-2008)3. The U.S. Current Account Balance and Oil Prices during the Adjuntment Episodes; 4. Cumulative Financial Flows and Changes in the U.S. International Investment Position; Figures; 1. Real Effective Exchange Rate, January 1973-September 2008; 2. Current Account Balance and Non-Oil Balance on Goods and Services (ratio of GDP, 1970Q1-2008Q2); 3. Real Effective Exchange Rate and ""WARP"" Index; 4. Lagged ""WARP"" Index and Non-Oil Balance of Goods and Services5. Non-Oil Trade Balance and Real Exchange Rate: Cross-Correlation (1978Q1-2008Q2)6. Terms of Trade and Oil Prices, 1973-2008; ReferencesThe real effective exchange rate of the dollar is close to its minimum level for the past 4decades (as of September 2008). At the same time, however, the U.S. trade and currentaccount deficits remain large and, absent a significant correction in coming years, wouldcontribute to a further accumulation of U.S. external liabilities. The paper discusses thetension between these two aspects of the dollar assessment, and what factors can helpreconcile them. It focuses in particular on the terms of trade, adjustment lags, andmeasurement issues related to both the real effective exchange rate and the current accountbalance.IMF Working Papers; Working Paper ;No. 2008/260Foreign exchange ratesUnited StatesBalance of paymentsUnited StatesBudget deficitsUnited StatesDollar, AmericanExports and ImportsimfForeign ExchangeimfCurrent Account AdjustmentimfShort-term Capital MovementsimfEmpirical Studies of TradeimfInternational InvestmentimfLong-term Capital MovementsimfInternational economicsimfCurrencyimfForeign exchangeimfReal effective exchange ratesimfCurrent account deficitsimfTrade balanceimfCurrent account balanceimfExternal positionimfBalance of paymentsimfBalance of tradeimfInternational financeimfUnited StatesimfForeign exchange ratesBalance of paymentsBudget deficitsDollar, American.Exports and ImportsForeign ExchangeCurrent Account AdjustmentShort-term Capital MovementsEmpirical Studies of TradeInternational InvestmentLong-term Capital MovementsInternational economicsCurrencyForeign exchangeReal effective exchange ratesCurrent account deficitsTrade balanceCurrent account balanceExternal positionBalance of paymentsBalance of tradeInternational finance332.450973Milesi-Ferretti Gian1462146DcWaIMFBOOK9910788342003321Fundamentals at Odds? The U.S. Current Account Deficit and The Dollar3716471UNINA