Rapid Current Account Adjustments : : Are Microstates Different? / / Patrick Imam

• Autore: Imam Patrick
• Pubblicazione: Washington, D.C. : , : International Monetary Fund, , 2008
• Descrizione fisica: 1 online resource (30 p.)
• Disciplina: 330.9
• Soggetto topico: States, Small - Economic conditions - Econometric models; Balance of payments - Econometric models; Foreign exchange rates - Econometric models; Structural adjustment (Economic policy) - Econometric models; Exports and Imports; Foreign Exchange; Empirical Studies of Trade; Trade: General; Current Account Adjustment; Short-term Capital Movements; International economics; Currency; Foreign exchange; Terms of trade; Exports; Imports; Current account; Real effective exchange rates; Economic policy; nternational cooperation; Balance of payments
• Soggetto geografico: Mauritius
• Note generali: Description based upon print version of record.
• Nota di bibliografia: Includes bibliographical references.
• Nota di contenuto: 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 Changes
• Sommario/riassunto: We 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.
• Titolo autorizzato: Rapid Current Account Adjustments
• ISBN: 1-4623-8908-2; 1-4527-3898-X; 1-282-84184-X; 9786612841842; 1-4518-7091-4
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Lingua di pubblicazione: Inglese
• Record Nr.: 9910788344503321
• Lo trovi qui: Univ. Federico II
• Serie: IMF Working Papers; Working Paper ; ; No. 2008/233