Terms of Trade Shocks and the Current Account:
This paper examines the relationship between terms of trade shocks, private saving, and the current account position. The relationship between these variables is theoretically ambiguous: an adverse transitory terms of trade shock can either induce a deterioration or an improvement in the current acc...
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1. Verfasser: | |
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
1998
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Schriftenreihe: | IMF Working Papers
Working Paper No. 98/177 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | This paper examines the relationship between terms of trade shocks, private saving, and the current account position. The relationship between these variables is theoretically ambiguous: an adverse transitory terms of trade shock can either induce a deterioration or an improvement in the current account, depending on whether the resulting income effects are greater or less than the resulting substitution effects. The substitution effects involve both intertemporally substituting consumption and intratemporally substituting consumption between importables and nontradables. The relative strength of these substitution effects is estimated using data for five OECD countries during 1970/95; both are found to exert large and significant effects on the current account balance |
Beschreibung: | 1 Online-Ressource (40 p) |
ISBN: | 145197504X 9781451975048 |
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spelling | Cashin, Paul Verfasser aut Terms of Trade Shocks and the Current Account Cashin, Paul Washington, D.C International Monetary Fund 1998 1 Online-Ressource (40 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 98/177 This paper examines the relationship between terms of trade shocks, private saving, and the current account position. The relationship between these variables is theoretically ambiguous: an adverse transitory terms of trade shock can either induce a deterioration or an improvement in the current account, depending on whether the resulting income effects are greater or less than the resulting substitution effects. The substitution effects involve both intertemporally substituting consumption and intratemporally substituting consumption between importables and nontradables. The relative strength of these substitution effects is estimated using data for five OECD countries during 1970/95; both are found to exert large and significant effects on the current account balance Online-Ausg McDermott, C. John Sonstige oth http://elibrary.imf.org/view/IMF001/06756-9781451975048/06756-9781451975048/06756-9781451975048.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Cashin, Paul Terms of Trade Shocks and the Current Account |
title | Terms of Trade Shocks and the Current Account |
title_auth | Terms of Trade Shocks and the Current Account |
title_exact_search | Terms of Trade Shocks and the Current Account |
title_exact_search_txtP | Terms of Trade Shocks and the Current Account |
title_full | Terms of Trade Shocks and the Current Account Cashin, Paul |
title_fullStr | Terms of Trade Shocks and the Current Account Cashin, Paul |
title_full_unstemmed | Terms of Trade Shocks and the Current Account Cashin, Paul |
title_short | Terms of Trade Shocks and the Current Account |
title_sort | terms of trade shocks and the current account |
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