04943oam 22010574 450 991081691740332120240402050708.01-4623-8908-21-4527-3898-X1-282-84184-X97866128418421-4518-7091-4(CKB)3170000000055129(EBL)1608037(SSID)ssj0000943034(PQKBManifestationID)11515167(PQKBTitleCode)TC0000943034(PQKBWorkID)10975130(PQKB)10106057(OCoLC)465418230(MiAaPQ)EBC1608037(IMF)WPIEE2008233(EXLCZ)99317000000005512920020129d2008 uf 0engurcnu||||||||txtccrRapid Current Account Adjustments : Are Microstates Different? /Patrick Imam1st ed.Washington, D.C. :International Monetary Fund,2008.1 online resource (30 p.)IMF Working PapersIMF working paper ;WP/08/233Description based upon print version of record.1-4519-1544-6 Includes bibliographical references.Contents; I. Introduction; II. Evolution of the Current Account of Microstates, 1980-2005; III. Unique Aspects of the Current Account of Microstates; IV. "Old" Versus "New" View of the Current Account; V. Rapid Current Account Adjustment; VI. Conclusions and Policy Implications; VII. References; Appendix 1: Stylized Facts on The Current Account After Persistent Terms of Trade Shocks; Identifying Persistent Negative Terms of Trade Shocks; Current Account After Terms of Trade ChangesWe describe unique aspects of microstates-they are less diversified, suffer from lumpiness of investment, they are geographically at the periphery and prone to natural disasters, and have less access to capital markets-that may make the current account more vulnerable, penalizing exports and making imports dearer. After reviewing the "old" and "new" view on current account deficits, we attempt to identify policies to help reduce the current account. Probit regressions suggest that microstates are more likely to have large current account adjustments if (i) they are already running large current account deficits; (ii) they run budget surpluses; (iii) the terms of trade improve; (iv) they are less open; and (v) GDP growth declines. Monetary policy, financial development, per capita GDP, and the de jure exchange rate classification matter less. However, changes in the real effective exchange rate do not help drive reductions in the current account deficit in microstates. We explore reasons for this and provide policy implications.IMF Working Papers; Working Paper ;No. 2008/233States, SmallEconomic conditionsEconometric modelsBalance of paymentsEconometric modelsForeign exchange ratesEconometric modelsStructural adjustment (Economic policy)Econometric modelsExports and ImportsimfForeign ExchangeimfEmpirical Studies of TradeimfTrade: GeneralimfCurrent Account AdjustmentimfShort-term Capital MovementsimfInternational economicsimfCurrencyimfForeign exchangeimfTerms of tradeimfExportsimfImportsimfCurrent accountimfReal effective exchange ratesimfEconomic policyimfnternational cooperationimfBalance of paymentsimfMauritiusimfStates, SmallEconomic conditionsEconometric models.Balance of paymentsEconometric models.Foreign exchange ratesEconometric models.Structural adjustment (Economic policy)Econometric models.Exports and ImportsForeign ExchangeEmpirical Studies of TradeTrade: GeneralCurrent Account AdjustmentShort-term Capital MovementsInternational economicsCurrencyForeign exchangeTerms of tradeExportsImportsCurrent accountReal effective exchange ratesEconomic policynternational cooperationBalance of payments330.9Imam Patrick1610209DcWaIMFBOOK9910816917403321Rapid Current Account Adjustments4058516UNINA