Current Account Sustainability: Selected East Asian and Latin American Experiences
IMF Working Papers, October 1, 1996
Source details
- Canonical URL
- Current Account Sustainability: Selected East Asian and Latin American Experiences
Other formats
Bibliographic details
- Authors: Assaf Razin, Gian M Milesi-Ferretti
- Published: October 1, 1996
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451853292.001
Summary
- A number of developing countries ran 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.
- The 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.
- The paper identifies a number of potential sustainability indicators and discusses their usefulness in predicting external crises.
Key Topics and Subjects Covered
- Balance of payments
- Current account
- Current account deficits
- Current account imbalances
- External debt
- Foreign exchange
- Real exchange rates
Keywords and Analytical Focus
- borrowing firm
- Current account
- Current account deficits
- Current account imbalances
- debt flow
- debt neutrality result
- debtor country
- decision of a representative firm
- East Asia
- exchange rate
- external shock
- foreign direct investment
- investment decision
- present discounted value
- Real exchange rates
- representative firm
- short-term debt
- terms of trade
- world debt table
- WP
Core Contributions (as described on the page)
- Formulates a notion of current account sustainability.
- Compares six country experiences (Chile, Colombia, Mexico, Korea, Malaysia, Thailand) across episodes of large and persistent current account deficits.
- Identifies potential sustainability indicators and assesses their usefulness for predicting external crises.
Access and Formats
- Listed under IMF Working Papers.
- More formats available on IMF eLibrary.
Disclaimer (as presented)
- 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.
Source: Current Account Sustainability: Selected East Asian and Latin American Experiences — IMF Working Papers, October 1, 1996.