Current Accounts: What Is Their Relevance for Economic Policymaking?
IMF Working Papers, May 1, 1998
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- Current Accounts: What Is Their Relevance for Economic Policymaking?
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Bibliographic details
- Authors: Fabio Scacciavillani, Malcolm D. Knight
- Published: May 1, 1998
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451849219.001
Summary and theoretical approaches
- The 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.
- 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.
Implications for policymaking
- Policy implications derive from the view that current account positions reflect intertemporal decisions and capital market behavior, not only goods market imbalances.
- Policymaking should consider:
- Intertemporal consumption and investment choices.
- Associated capital market behavior and its influence on current account dynamics.
Empirical examination: country experiences
- The paper analyzes recent experiences of:
- Italy
- Israel
- Pakistan
- These country analyses are used to reflect on policy strategies applied under diverse circumstances.
Key publication facts and identifiers
- Authors: Fabio Scacciavillani, Malcolm D. Knight
- Publication date: May 1, 1998
- Series: Working Paper No. 1998/071
- Issue: 071
- Volume: 1998
- Pages: 41
- DOI: https://doi.org/10.5089/9781451849219.001
- Stock No: WPIEA0711998
- ISBN: 9781451849219
- ISSN: 1018-5941
Source: IMF Working Papers — "Current Accounts: What Is Their Relevance for Economic Policymaking?" by Fabio Scacciavillani and Malcolm D. Knight (May 1, 1998).
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- Current Accounts: What Is Thier Relevance for Economic Policymaking?