Does the current account still matter?

American Economic Review

Volumn 102, Issue 3, 2012, Pages 1-23

  Obstfeld, Maurice ^a  

^a UNIVERSITY OF CALIFORNIA   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84863187655     PISSN: 00028282     EISSN: None     Source Type: Journal    
DOI: 10.1257/aer.102.3.1     Document Type: Conference Paper

References (68)

1. Acharya, Viral V., and Philipp Schnabl. 2009. "How Banks Played the Leverage Game." In Restoring Financial Stability: How to Repair a Failed System, edited by Viral V. Acharya and Matthew Richardson, 83-100. Hoboken, NJ: Wiley.
2. Acharya, Viral V., and Philipp Schnabl. 2010. "Do Global Banks Spread Global Imbalances? Asset-Backed Commercial Paper during the Financial Crisis of 2007-09." International Monetary Fund (IMF) Economic Review 58 (1): 37-73.
3. Belkar, Rochelle, Lynne Cockerell, and Christopher Kent. 2007. "Current Account Deficits: The Australian Debate." Reserve Bank of Australia (RBA) Research Discussion Paper.
4. Bernanke, Ben S. 2005. "Remarks by Governor Ben S. Bernanke: The Global Saving Glut and the U.S. Current Account Deficit." The Sandridge Lecture, Virginia Association of Economists, Richmond, VA, March 10.
5. Bernanke, Ben S., Carol Bertaut, Laurie Pounder DeMarco, and Steven Kamin. 2011. "International Capital Flows and the Returns to Safe Assets in the United States, 2003-2007." Financial Stability Review 15: 13-26.
6. Bertaut, Carol, Laurie Pounder DeMarco, Steve Kamin, and Ralph Tryon. 2011. "ABS Inflows to the United States and the Global Financial Crisis." Board of Governors of the Federal Reserve System (US), International Finance Discussion Paper 1028.
7. Blanchard, Olivier J., and Gian Maria Milesi-Ferretti. 2011. "(Why) Should Current Account Imbalances Be Reduced?" International Monetary Fund (IMF) Staff Discussion Note SDN/11/03.
8. Borio, Claudio, and Piti Disyatat. 2011. "Global Imbalances and the Financial Crisis: Link or No Link?" Bank for International Settlements (BIS) Working Paper No. 346.
9. Borio, Claudio, and Philip Lowe. 2002. "Assessing the Risk of Banking Crises." Bank for International Settlements (BIS) Quarterly Review: 43-54.
10. Boughton, James M. 2001. Silent Revolution: The International Monetary Fund, 1979-1989. Washington, DC: International Monetary Fund.
11. Buiter, Willem H., Ebrahim Rahbari, and Juergen Michels. 2011. "TARGETing the Wrong Villain: TARGET2 and Intra-Eurosystem Imbalances in Credit Flows." Citi Global Economics View, June 9.
12. Calvo, Guillermo A. 2000. "Balance-of-Payments Crises in Emerging Markets: Large Capital Inflows and Sovereign Governments." In Currency Crises, edited by Paul Krugman, 71-104. Chicago: University of Chicago Press.
13. Calvo, Guillermo A., and Carmen M. Reinhart. 2000. "When Capital Inflows Suddenly Stop: Consequences and Policy Options." In Reforming the International Monetary and Financial System, edited by Peter B. Kenen and Alexander K. Swoboda, 175-201. Washington, DC: International Monetary Fund.
14. Catão, Luis, and Gian Maria Milesi-Ferretti. 2011. "External Liabilities and Crises." Unpublished.
15. Coeurdacier, Nicolas, Robert Kollmann, and Philippe Martin. 2010. "International Portfolios, Capital Accumulation and Foreign Assets Dynamics." Journal of International Economics 80 (1): 100-12.
16. Cooper, R. N. 1966. "The Balance of Payments in Review." Journal of Political Economy 74: 379-95.
17. Corden, W. Max. 2007. "Those Current Account Imbalances: A Sceptical View." The World Economy 30 (3): 363-82.
18. Curcuru, Stephanie E., Tomas Dvorak, and Francis E. Warnock. 2008. "Cross-Border Returns Differentials." Quarterly Journal of Economics 123 (4): 1495-530.
19. Curcuru, Stephanie E., Charles P. Thomas, and Francis E. Warnock. 2012. "On Returns Differentials." Unpublished.
20. Devereux, Michael B., and Alan Sutherland. 2010. "Valuation Effects and the Dynamics of Net External Assets." Journal of International Economics 80 (1): 129-43.
21. Díaz-Alejandro, Carlos. 1985. "Good-bye Financial Repression, Hello Financial Crash." Journal of Development Economics 19 (1-2): 1-24.
22. Edwards, Sebastian. 2002. "Does the Current Account Matter?" In Preventing Crises in Emerging Markets, edited by Sebastian Edwards and Jeffrey A. Frankel, 21-76. Chicago: University of Chicago Press.
23. Fagan, Gabriel, and Vitor Gaspar. 2007. "Adjusting to the Euro." European Central Bank Working Paper 716.
24. Fetter, F. W. 1935. "The Term 'Favorable Balance of Trade.'" Quarterly Journal of Economics 49: 621-45.
25. Forbes, Kristin J., and Francis E. Warnock. 2011. "Capital Flow Waves: Surges, Stops, Flight, and Retrenchment." National Bureau of Economic Research Working Paper 17351.
26. Frankel, Jeffrey A., and Andrew K. Rose. 1996. "Currency Crashes in Emerging Markets: An Empirical Treatment." Journal of International Economics 41 (3-4): 351-66.
27. Frankel, Jeffrey A., and George Saravelos. 2010. "Are Leading Indicators of Financial Crises Useful for Assessing Country Vulnerability? Evidence from the 2008-09 Global Crisis." National Bureau of Economic Research Working Paper 16047.
28. Freund, Caroline, and Frank Warnock. 2007. "Current Account Deficits in Industrial Countries: The Bigger They Are, the Harder They Fall?" In G7 Current Account Imbalances: Sustainability and Adjustment, edited by Richard H. Clarida, 133-68. Chicago: University of Chicago Press.
29. Giavazzi, Francesco, and Luigi Spaventa. 2010. "Why the Current Account May Matter in a Monetary Union: Lessons from the Financial Crisis in the Euro Area." Center for Economic Policy Research Discussion Paper 8008.
30. Gohrband, Christopher A., and Kristy L. Howell. Forthcoming. "U.S. International Financial Flows and the U.S. Net Investment Position: New Perspectives Arising from New International Standards." In Wealth, Financial Intermediation, and the Real Economy, edited by Charles Hulten, Michael Palumbo, and Marshall Reinsdorf. Chicago: University of Chicago Press.
31. Goldberg, Linda S., Craig Kennedy, and Jason Miu. 2011. "Central Bank Dollar Swap Lines and Overseas Dollar Funding Costs." Economic Policy Review (Federal Reserve Bank of New York) 17 (1): 3-20.
32. Gourinchas, Pierre-Olivier. 2011. "Global Imbalances and Global Liquidity." Paper presented at the Asia Economic Policy Conference, Federal Reserve Bank of San Francisco, San Francisco, CA, November 28-30.
33. Gourinchas, Pierre-Olivier, and Maurice Obstfeld. 2012. "Stories of the Twentieth Century for the Twenty-First." American Economic Journal: Macroeconomics 4 (1): 226-65.
34. Gourinchas, Pierre-Olivier, and Hélène Rey. 2007a. "From World Banker to World Venture Capitalist: U.S. External Adjustment and the Exorbitant Privilege." In G7 Current Account Imbalances: Sustainability and Adjustment, edited by Richard H. Clarida, 11-66. Chicago: University of Chicago Press.
35. Gourinchas, Pierre-Olivier, and Hélène Rey. 2007b. "International Financial Adjustment." Journal of Political Economy 115 (4): 665-703.
36. Gourinchas, Pierre-Olivier, Hélène Rey, and Nicolas Govillot. 2010. "Exorbitant Privilege and Exorbitant Duty." Paper presented at the 2010 International Conference: Future of Central Banking under Globalization, Bank of Japan, Tokyo, May 26-27.
37. Hume, Michael, and Andrew Sentance. 2009. "The Global Credit Boom: Challenges for Macroeconomics and Policy." Journal of International Money and Finance 28 (8): 1426-61.
38. International Monetary Fund. 1988. Summary Proceedings of the Forty-Third Annual Meeting of the Board of Governors, September 27-29. Washington, DC: International Monetary Fund.
39. International Monetary Fund. 2005. World Economic Outlook: Globalization and External Imbalances. Washington, DC: International Monetary Fund.
40. International Monetary Fund. 2011. World Economic Outlook: Slowing Growth, Rising Risks. Washington, DC: International Monetary Fund.
41. Johnson, Karen H. 2009. "Gross or Net International Financial Flows: Understanding the Financial Crisis." Unpublished.
42. Jordà, Òscar, Moritz Schularick, and Alan M. Taylor. 2011. "Financial Crises, Credit Booms, and External Imbalances: 140 Years of Lessons." International Monetary Fund (IMF) Economic Review 59 (2): 340-78.
43. Korinek, Anton. 2011. "The New Economics of Prudential Capital Controls: A Research Agenda." International Monetary Fund (IMF) Economic Review 59 (3): 523-61.
44. Lane, Philip R., and Gian Maria Milesi-Ferretti. 2007. "The External Wealth of Nations Mark II: Revised and Extended Estimates of Foreign Assets and Liabilities, 1970-2004." Journal of International Economics 73 (2): 223-50.
45. Lane, Philip R., and Gian Maria Milesi-Ferretti. 2009. "Where Did All the Borrowing Go? A Forensic Analysis of the U.S. External Position." Journal of the Japanese and International Economies 23 (2): 177-99.
46. Lane, Philip R., and Barbara Pels. 2011. "Current Account Imbalances in Europe." Unpublished.
47. Lawson, Nigel. 2011. "Five Myths and a Menace." Standpoint, January/February. http://www.standpointmag.co.uk/features-janfeb-11-fivemyths- and-a-menace-ligel-lawson-adamsmith-economics.
48. Lucas, Robert E., Jr. 1982. "Interest Rates and Currency Prices in a Two-Country World." Journal of Monetary Economics 10 (3): 335-59.
49. McGuire, Patrick, and Goetz von Peter. 2009. "The US Dollar Shortage in Global Banking." Bank for International Settlements (BIS) Working Paper 291.
50. Meade, James E. 1951. The Balance of Payments. London: Oxford University Press.
51. Mendoza, Enrique G. 2010. "Sudden Stops, Financial Crises, and Leverage." American Economic Review 100 (5): 1941-66.
52. Mendoza, Enrique G., and Marco E. Terrones. 2008. "An Anatomy of Credit Booms: Evidence From Macro Aggregates and Micro Data." National Bureau of Economic Research Working Paper 14049.
53. Milesi-Ferretti, Gian Maria, and Philip R. Lane. 2011. "External Adjustment and the Global Crisis." International Monetary Fund (IMF) Working Paper 11/197.
54. Milesi-Ferretti, Gian Maria, and Assaf Razin. 2000. "Current Account Reversals and Currency Crises: Empirical Regularities." In Currency Crises, edited by Paul Krugman, 285-323. Chicago: University of Chicago Press.
55. Obstfeld, Maurice. 2004. "External Adjustment." Review of World Economics 140 (4): 541-68.
56. Obstfeld, Maurice. 2007. "International Risk Sharing and the Costs of Trade." Ohlin Lecture notes, Stockholm School of Economics, May 23-24. http://elsa.berkeley.edu/~obstfeld/Ohlin-show.pdf.
57. Obstfeld, Maurice, and Kenneth Rogoff. 1996. Foundations of International Macroeconomics. Cambridge, MA: MIT Press.
58. Obstfeld, Maurice, and Kenneth Rogoff. 2007. "The Unsustainable U.S. Current Account Position Revisited." In G7 Current Account Imbalances: Sustainability and Adjustment, edited by Richard H. Clarida, 339-66. Chicago: University of Chicago Press.
59. Obstfeld, Maurice, and Kenneth Rogoff. 2010. "Global Imbalances and the Financial Crisis: Products of Common Causes." In Asia and the Global Financial Crisis, edited by Reuven Glick and Mark M. Spiegel. San Francisco: Federal Reserve Bank of San Francisco.
60. Ostry, Jonathan D., Atish R. Ghosh, Karl Habermeier, Luc Laeven, Marcos Chamon, Mahvash S. Qureshi, and Annamaria Kokenyne. 2011. "Managing Capital Inflows: What Tools to Use?" International Monetary Fund (IMF) Staff Discussion Note SDN/11/06.
61. Pitchford, J. D. 1989. "A Sceptical View of Australia's Current Account and Debt Problem." Australian Economic Review 22 (2): 5-14.
62. Price, W. H. 1905. "The Origin of the Phrase 'Balance of Trade.'" Quarterly Journal of Economics 20: 157-67.
63. Reinhart, Carmen M., and Vincent R. Reinhart. 2009. "Capital Flow Bonanzas: An Encompassing View of the Past and Present." In National Bureau of Economic Research International Seminar on Macroeconomics 2008, edited by Jeffrey Frankel and Christopher Pissarides, 9-62. Chicago: University of Chicago Press.
64. Reinhart, Carmen M., and M. Belen Sbrancia. 2011. "The Liquidation of Government Debt." National Bureau of Economic Research Working Paper 16893.
65. Review Committee for Balance of Payments Statistics. 1965. The Balance of Payments Statistics of the United States: Review and Appraisal. Washington, DC: US Government Printing Office.
66. Schularick, Moritz, and Alan M. Taylor. Forthcoming. "Credit Booms Gone Bust: Monetary Policy, Leverage Cycles and Financial Crises, 1870-2008." American Economic Review.
67. Shin, Hyun Song. Forthcoming. "Global Banking Glut and Loan Risk Premium." International Monetary Fund (IMF) Economic Review.
68. Wolf, Martin. 2011. "Merkozy Failed to Save the Euro Zone." Financial Times, December 6. http://www.ft.com/intl/cms/s/0/396ff020-1ffd-11e1- 8662-00144feabdc0.html#axzz1g4jmAqQG.