Current Account Sustainability: Selected East Asian and Latin American Experiences

Author/Editor:

Assaf Razin ; Gian M Milesi-Ferretti

Publication Date:

October 1, 1996

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:

A number of developing countries have run large and persistent current account deficits in both the late seventies/early eighties and in the early nineties, raising the issue of whether these persistent imbalances are sustainable. This paper puts forward a notion of current account sustainability and compares the experience of three Latin American countries-Chile, Colombia Mexico-and three East Asian countries-Korea, Malaysia and Thailand. It identifies a number of potential sustainability indicators and discusses their usefulness in predicting external crises.

Series:

Working Paper No. 1996/110

Subject:

Balance of payments Current account Current account deficits Current account imbalances External debt Foreign exchange Real exchange rates

English

Publication Date:

October 1, 1996

ISBN/ISSN:

9781451853292/1018-5941

Stock No:

WPIEA1101996

Pages:

50

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