Current Accounts : What Is Their Relevance for Economic Policymaking?

Author/Editor:

Fabio Scacciavillani ; Malcolm D. Knight

Publication Date:

May 1, 1998

Electronic Access:

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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 surveys the main theoretical approaches for analyzing movements in the current account of the balance of payments, from the Mundell-Fleming paradigm to modern intertemporal approaches. It discusses the main implications of these analyses for policymaking, highlighting that modern economic theory views current account imbalances not simply as a reflection of goods market developments, but also as an outcome of intertemporal consumption and investment choices and associated capital market behavior. To reflect on the policy strategies applied under diverse circumstances, the paper analyzes the recent experiences of Italy, Israel, and Pakistan.

Series:

Working Paper No. 98/71

Subject:

English

Publication Date:

May 1, 1998

ISBN/ISSN:

9781451849219/1018-5941

Stock No:

WPIEA0711998

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

41

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