TY  - BOOK
AU  - Helbling,Thomas
AU  - Turtelboom,Bart
TI  - Real Interest Rates, Real Exchange Rates, and Net Foreign Assets in the Adjustment Process
T2  - IMF Working Papers; Working Paper
SN  - 1451934734 :
SN  - 1018-5941
PY  - 1995///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Foreign Asset Position
KW  - imf
KW  - Foreign Asset
KW  - Foreign Assets
KW  - Net Foreign Asset Position
KW  - Net Foreign Asset
KW  - United States
N2  - This paper analyzes the recent behavior of real exchange rates, the trade balance and the net foreign asset position of the United States in an intertemporal optimizing model of the world economy that incorporates heterogeneity across countries and imperfect international capital and good markets. While the model successfully tracks the dynamics of trade balances and net foreign assets it generates too much consumption smoothing and excessively volatile relative prices. Resolving these inadequacies simultaneously is difficult as the elasticity of substitution between tradables and nontradables affects in opposite ways the degree of consumption smoothing and the volatility of relative prices
UR  - http://elibrary.imf.org/view/IMF001/05565-9781451934731/05565-9781451934731/05565-9781451934731.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451934731
ER  -