Global Imbalances and Petrodollars
April 1, 2009
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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.
Subject: Current account, Fiscal stance, Oil, Oil prices, Terms of trade
Keywords: exporter, exporters' current account, exporters' current account dynamics, oil exporter, price, WP
Pages:
25
Volume:
2009
DOI:
Issue:
089
Series:
Working Paper No. 2009/089
Stock No:
WPIEA2009089
ISBN:
9781451872361
ISSN:
1018-5941
