Global Imbalances and Petrodollars

Author/Editor:

Fuad Hasanov ; Rabah Arezki

Publication Date:

April 1, 2009

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:

Oil exporters have run large current account surpluses. We explore oil exporters' role in our understanding and the resolution of global imbalances. Current account dynamics are estimated for oil-exporting countries and the rest of the world. We find that fiscal policy has a much stronger effect on current account of oil exporters than on current account of other countries. The current account adjustment of oil-exporting countries is also faster than that of other countries. We conclude that a change in fiscal policy of oil exporters can have significant and speedy impact on global imbalances.

Series:

Working Paper No. 09/89

Subject:

English

Publication Date:

April 1, 2009

ISBN/ISSN:

9781451872361/1018-5941

Stock No:

WPIEA2009089

Format:

Paper

Pages:

25

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