scholarly journals Anticipated Protectionist Policies, Real Exchange Rates and the Current Account

10.3386/w2214 ◽  
1987 ◽  
Author(s):  
Sebastian Edwards ◽  
Jonathan Ostry
Keyword(s):  
Exchange Rates ◽  
Current Account ◽  
Real Exchange Rates ◽  
The Current Account

scholarly journals Current Account Fragilities in the Balkan Countries

2014 ◽  
Author(s):  
Ercan Uygur
Keyword(s):  
Exchange Rates ◽  
Current Account ◽  
Trade Balance ◽  
Current Account Deficit ◽  
Real Exchange Rates ◽  
Foreign Debt ◽  
Debt Ratio ◽  
Current Account Deficits ◽  
Balkan Countries ◽  
The Current Account

The basic aim of this paper is to make an evaluation of the current account deficits in the Balkan countries. Particularly, sustainability of these deficits is explored for some countries on the basis of a criterion that makes use of variables including foreign debt ratio, growth rate, exchange rate, foreign interest rate and foreign trade balance ratio. Countries with significant current account deficit/GDP ratios include, in descending order, Albania, Bosnia Herzegovina, Turkey, Serbia and Macedonia. Sources of financing of the current account deficits, real exchange rates and inflation are other variables that are considered in the evaluations.

scholarly journals Relevance of Exchange Rates on the Trade Imbalance in the Eurozone

2014 ◽  
Vol 15 (2) ◽  
pp. 111-129
Author(s):  
Myoung Shik Choi
Keyword(s):  
Exchange Rates ◽  
Current Account ◽  
Current Account Deficit ◽  
Real Exchange Rates ◽  
Real Effective Exchange Rate ◽  
Current Account Balance ◽  
Euro Zone ◽  
Stage Of Development ◽  
Demographic Aging ◽  
The Current Account

European monetary integration is causing economic imbalances because the optimal currency area criterion is not being properly met. Euro countries are experiencing chronic current account deficits. The purpose of this study is to explore the long-running divergent dynamics of real exchange rates and their determinants and influence. In this estimation, we find that the real effective exchange rate (REER) has a long term equilibrium relation to the balance of current account, the demographic aging effect, and the stage of development effect as a Euro-zone group. Also, we find that individual REER discrepancies have greatly diminished in recent years while the misalignments of individual and group REERs show a steady converging tendency of their equilibrium rates. The co-movement effect on the REER misalignment indicates a weak influence of determinant factors. In addition, the Euro-zone drives the undervalued rate of 3.44% with the current account deficit of 0.08% for the sample period, and the REER misalignment is not closely related to the trade deficit. The results for the future of the Eurozone would imply that the misalignments of currency cooperation members show an increasingly converging tendency of their equilibrium over time, and they also display co-integration regarding the current account balance and development phase as well as population aging.

scholarly journals Analysis of Current Account and Real Exchange Rate: Lower Middle Income Countries in Association of Southeast Asian Nations

2019 ◽  
Vol 8 (5C) ◽  
pp. 662-668
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Exchange Rates ◽  
Real Exchange Rate ◽  
Current Account ◽  
Direct Investment ◽  
Real Exchange Rates ◽  
Middle Income ◽  
Negative Effect ◽  
Positive Effect

The study investigates the simultaneous equation model of the current account and real exchange rates in group of lower middle income in Association of Southeast Asian Nations (ASEAN). This study uses time series from 2000-2017 (18 years) and cross section 6 countries (Indonesia, Philippines, Vietnam, Lao, Myanmar, and Cambodia). There are three important findings in this study; first, for the current account is financial development has positive effect while government spending and foreign direct investment have negative effect; second, for the real exchange rate is economic openness, money supply, and interest rate have positive effect while foreign direct investment and current account have negative effect; third, only current account affects real exchange rates. Therefore, it is highly recommended for group of lower middle income in ASEAN to intervene in monetary policy variables so that uncontrolled deficits and fluctuations can achieve equilibrium in group of lower middle income in ASEAN.

scholarly journals Asset Prices, Exchange Rates and the Current Account

2008 ◽  
Author(s):  
Marcel Fratzscher ◽  
Luciana Juvenal ◽  
Lucio Sarno
Keyword(s):  
Exchange Rates ◽  
Current Account ◽  
Asset Prices ◽  
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.

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