Nominal shocks and the current account: A structural VAR analysis of 14 OECD countries

2004 ◽  
Vol 140 (4) ◽  
pp. 569-591 ◽  
Author(s):  
Massimo Giuliodori
Keyword(s):  
Current Account ◽  
Oecd Countries ◽  
Structural Var ◽  
Var Analysis ◽  
Nominal Shocks ◽  
The Current Account

scholarly journals Interlinkage Between Real Exchange Rate And Current Account Behaviors: Evidence From India

2015 ◽  
Vol 31 (4) ◽  
pp. 1199-1204
Author(s):  
Mohamed Arouri ◽  
Arif Billah Dar ◽  
Niyati Bhanja ◽  
Aviral Kumar Tiwari ◽  
Frederic Teulon
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Current Account ◽  
Current Account Deficit ◽  
Real Exchange Rates ◽  
Structural Var ◽  
Real Effective Exchange Rate ◽  
Effective Exchange ◽  
Positive Shock ◽  
The Current Account

The study analyzes the dynamic interlinkage between Indias real effective exchange rate and real current account deficit using standard VAR and structural VAR (SVAR). The empirical analysis suggests that a real currency appreciation leads to an improvement in the current account deficit, thereby highlighting the occurrence of permanent shocks such as technical innovations, productivity shocks, and changes in tastes and preferences. A positive shock to the current account deficit leads to an appreciation in the real exchange rate. Moreover, both current account and real exchange rates are found to be affected by the changes in these variables themselves rather than changes in the other variables in the system.

Some Observations on the Geographical Structure of International Deficits and their Financing

1979 ◽  
Vol 18 (3) ◽  
pp. 265-275
Author(s):  
Rohert Triffin
Keyword(s):  
Current Account ◽  
Oecd Countries ◽  
Statistical Estimates ◽  
Geographical Structure ◽  
The World ◽  
Order Of Magnitude ◽  
The Current Account

I should note at the outset that many defects exist in the statistical estimates that are used in the field under discussion. The estimates most often cited come from the OECD, which purport to show, for December 1977, a discrepancy of more than $88 billion over the years 1974 -1977 ($22 billion a year) between the current account surpluses of the OPEC countries ($175 billion) and the accumulated deficits of the rest of the world ($264 billion) [4 , p. 64]. This discrepancy is almost equal to the total deficits of the OECD countries during that period ($98 billion). There appear to be discrepancies of the same order of magnitude in the estimates of the transfers of capital and monetary reserves between various countries.

scholarly journals Asset Prices, Real Exchange Rate and Current Account Fluctuations: Some Structural VAR Evidence for Thailand

2017 ◽  
Vol 7 (2) ◽  
pp. 163
Author(s):  
Komain Jiranyakul
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Current Account ◽  
Stock Prices ◽  
Asset Prices ◽  
Housing Prices ◽  
Structural Var ◽  
Short Run ◽  
The Impact ◽  
The Current Account

This paper is motivated by the controversial issue in the literature pertaining to the impact of real exchange rate, housing prices and stock prices on current account fluctuations. Thailand’s quarterly data are used to examine the impacts of shocks to asset prices and real exchange rate on the current imbalances. The paper employs a structural VAR methodology with short-run restrictions. The estimates of structural VAR models are able to identify interactions among asset prices, real exchange rate, and the current account. The estimated results from two different structural models show that the responses of current account to shocks are different. It can be concluded that shocks to real exchange rate affect current account and that shocks to real housing prices can better explain current account fluctuations than shocks to real stock prices. Based upon the results from this study, policymakers should take into account the importance of shocks to real exchange rate and real housing prices that can affect the current account of the country. 

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