{
  "title": "External Balance in Low Income Countries",
  "publication": "IMF Working Papers, October 1, 2009",
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  "summary": "This paper offers a coherent empirical analysis of the determinants of the real exchange rate, the current account, and the net foreign assets position in low income countries.",
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      "heading": "Summary",
      "content": "- Paper offers a coherent empirical analysis of the determinants of the real exchange rate, the current account, and the net foreign assets position in low income countries.\n- Focuses on indicators specific to low income countries: the quality of policies and institutions, the special access to official external financing, and the role of shocks.\n- Emphasizes both standard factors and low-income-country-specific factors in shaping external balances."
    },
    {
      "heading": "Key findings",
      "content": "- Domestic financial liberalization is associated with higher current account balances and net foreign asset positions.\n- Capital account liberalization is associated with:\n  - lower current account balances,\n  - lower net foreign asset positions,\n  - more appreciated real exchange rates.\n- Negative exogenous shocks tend to:\n  - raise the current account in countries with closed capital accounts,\n  - reduce the current account in countries with opened capital accounts.\n- Foreign aid is progressively absorbed over time through net imports and is associated with a more depreciated real exchange rate in the long-run."
    },
    {
      "heading": "Subject matter and keywords",
      "content": "- Subject: Capital account liberalization, Current account, Foreign assets, Personal income, Real exchange rates\n- Keywords: current account balance, emphasizing saving, fiscal policy, income effect, terms of trade goods, trade balance, WP\n\n---\n\n Content in this bundle\n\n- Wp09221\n  - Wp09221 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp09221 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/external-balance-in-low-income-countries-23313"
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    "Authors: Lone Engbo Christiansen, Alessandro Prati, Luca A Ricci, Thierry Tressel",
    "Published: October 1, 2009",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451873689.001",
    "Paper offers a coherent empirical analysis of the determinants of the real exchange rate, the current account, and the net foreign assets position in low income countries.",
    "Focuses on indicators specific to low income countries: the quality of policies and institutions, the special access to official external financing, and the role of shocks.",
    "Emphasizes both standard factors and low-income-country-specific factors in shaping external balances.",
    "Domestic financial liberalization is associated with higher current account balances and net foreign asset positions.",
    "Capital account liberalization is associated with:",
    "Negative exogenous shocks tend to:",
    "Foreign aid is progressively absorbed over time through net imports and is associated with a more depreciated real exchange rate in the long-run.",
    "Subject: Capital account liberalization, Current account, Foreign assets, Personal income, Real exchange rates",
    "Keywords: current account balance, emphasizing saving, fiscal policy, income effect, terms of trade goods, trade balance, WP",
    "**Wp09221**"
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