TY  - BOOK
AU  - Sandri,Damiano
AU  - Mejean,Isabelle
AU  - Rabanal,Pau
AU  - Sandri,Damiano
TI  - Current Account Rebalancing and Real Exchange Rate Adjustment Between the U.S. and Emerging Asia
T2  - IMF Working Papers; Working Paper
SN  - 1455218960 :
SN  - 1018-5941
PY  - 2011///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Exchange Rate
KW  - imf
KW  - Export Prices
KW  - Intermediate Inputs
KW  - Macroeconomic Aspects of International Trade and Finance: Forecasting and Simulation
KW  - Open Economy Macroeconomics
KW  - Rebalancing
KW  - China, People's Republic of
N2  - A reduction in the U.S. current account deficit vis-à-vis emerging Asia involves a shift in demand from U.S. to emerging Asia tradable goods and a change in international relative prices. This paper quantifies the required adjustment in the terms of trade and real exchange rates in a three-country open economy model of the U.S., China, and other emerging Asia. We compare scenarios where both Chinese and other emerging Asian export prices change by the same proportion to the case where export prices remain constant in one country and increase in the other. Our results are robust to different assumptions about elasticities of substitution and to introducing a high degree of vertical fragmentation in production in the model
UR  - http://elibrary.imf.org/view/IMF001/11693-9781455218967/11693-9781455218967/11693-9781455218967.xml
UR  - http://www.imfbookstore.org/IMFORG/9781455218967
ER  -