External Adjustment - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook External Adjustment write by Maurice Obstfeld. This book was released on 2004. External Adjustment available in PDF, EPUB and Kindle. "Gross stocks of foreign assets have increased rapidly relative to national outputs since 1990, and the short-run capital gains and losses on those assets can amount to significant fractions of GDP. These fluctuations in asset values render the national income and product account measure of the current account balance increasingly inadequate as a summary of the change in a country's net foreign assets. Nonetheless, unusually large current account imbalances, especially deficits, should remain high on policymakers' list of concerns, even for the richer and less credit-constrained countries. Extreme imbalances signal the need for large and perhaps abrupt real exchange rate changes in the future, changes that might have undesired political and financial consequences given the incompleteness of domestic and international asset markets. Furthermore, of the two sources of the change in net foreign assets -- the current account and the capital gain on the net foreign asset position -- the former is better understood and more amenable to policy influence. Systematic government attempts to manipulate international asset values in order to change the net foreign asset position could have a destabilizing effect on market expectations"--NBER website
The Monetary Approach to External Adjustment
The Monetary Approach to External Adjustment - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Monetary Approach to External Adjustment write by Giuseppe Tullio. This book was released on 1981-06-18. The Monetary Approach to External Adjustment available in PDF, EPUB and Kindle.
Climate Policies and External Adjustment
Climate Policies and External Adjustment - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Climate Policies and External Adjustment write by Mr. Rudolfs Bems. This book was released on 2024-07-26. Climate Policies and External Adjustment available in PDF, EPUB and Kindle. This paper assesses the economic effects of climate policies on different regions and countries with a focus on external adjustment. The paper finds that various climate policies could have substantially different impacts on external balances over the next decade. A credible and globally coordinated carbon tax would decrease current account balances in greener advanced economies and increase current accounts in more fossil-fuel-dependent regions, reflecting a disproportionate decline in investment for the latter group. Green supply-side policies—green subsidy and infrastructure investment—would increase investment and saving but would have a more muted external sector impact because of the constrained pace of expansion for renewables or the symmetry of the infrastructure boost. Country characteristics, such as initial carbon intensity and net fossil fuel exports, ultimately determine the current account responses. For the global economy, a coordinated climate change mitigation policy package would shift capital towards advanced economies. Following an initial rise, the global interest rates would fall over time with increases in the carbon tax. These external sector effects, however, depend crucially on the degree of international policy coordination and credibility.
External Adjustment in a Resource-Rich Economy: The Case of Papua New Guinea
External Adjustment in a Resource-Rich Economy: The Case of Papua New Guinea - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook External Adjustment in a Resource-Rich Economy: The Case of Papua New Guinea write by Ryota Nakatani. This book was released on 2017-12-01. External Adjustment in a Resource-Rich Economy: The Case of Papua New Guinea available in PDF, EPUB and Kindle. How should resource-rich economies handle the balance of payments adjustment required after commodity price declines? This paper addresses the question theoretically by developing a simple two-period multi-sector model based on Nakatani (2016) to compare different exchange rate policies, and empirically by estimating elasticities of imports and commodity exports with respect to exchange rates using Papua New Guinean data. In the empirical part, using various econometric methods, I find the statistically significant elasticities of commodity exports to real exchange rates. In the theoretical part, by introducing the notion of a shadow exchange rate premium, I show how the rationing of foreign exchange reduces consumer welfare. Using the estimated elasticities and theoretical outcomes, I further discuss policy implications for resource-rich countries with a focus on Papua New Guinea.
External Adjustment and the Strong Yen
External Adjustment and the Strong Yen - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook External Adjustment and the Strong Yen write by International Monetary Fund. This book was released on 1988-08-09. External Adjustment and the Strong Yen available in PDF, EPUB and Kindle. The parameters of a conventional model of Japan’s current account were found to be stable in the period of the steeply rising yen between the fourth quarter of 1985 and the end of 1987. This suggests that Japan’s current account has been adjusting to the strengthening yen in accordance with established historical relationships—a conclusion that is substantiated by the model’s reasonably accurate tracking of the current account in this period. Furthermore, simulations of the model show that the rise in the yen has already made a substantial contribution to correcting Japan’s external imbalance.
