The Role of Stock Markets in Current Account Dynamics: Evidence from the United States

 
Author/Editor: Mercereau, Benoît
 
Publication Date: May 01, 2003
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: This paper tests a model of the role of stock markets in current account dynamics, developed in a companion paper. With U.S. data, the model performs better than the same model without stock markets. An insight given by the model is that the current account might help predict future stock market performance. This property receives some preliminary empirical confirmation. The results also suggest that stock markets matter to the current account dynamics.
 
Series: Working Paper No. 03/108
Subject(s): Stock markets | United States | Current account | Economic models

Author's Keyword(s): Current account | stock markets | fundamental equation | U.S. data | forecasting
 
English
Publication Date: May 01, 2003
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA1082003 Pages: 35
Price:
US$15.00 (Academic Rate:
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