TY  - BOOK
AU  - Chinn,Menzie David
AU  - Lee,Jaewoo
TI  - Current Account and Real Exchange Rate Dynamics in the G-7 Countries
T2  - IMF Working Papers; Working Paper
SN  - 1451855206 :
SN  - 1018-5941
PY  - 2002///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Current Account Balance
KW  - imf
KW  - Exchange Rate
KW  - Exchange Rates
KW  - Intertemporal Models
KW  - Open Economy Macroeconomics
KW  - Permanent and Temporary Shocks
KW  - Germany
KW  - Italy
KW  - Japan
KW  - United Kingdom
KW  - United States
N2  - The canonical predictions of intertemporal open-economy macro models are tested by a structural VAR analysis of Group of Seven countries. The analysis is distinguished from the previous literature in that it adopts minimal assumptions for identification. Consistent with a large set of theoretical models, permanent shocks have large long-term effects on the real exchange rate but relatively small effects on the current account; temporary shocks have large effects on the current account and exchange rate in the short run, but not on either variable in the long run. The signs of some impulse responses point toward models that differentiate tradables and nontradables
UR  - http://elibrary.imf.org/view/IMF001/01490-9781451855203/01490-9781451855203/01490-9781451855203.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451855203
ER  -