Limit search to available items
Book Cover
Author Mercereau, Benoît, author

Title The role of stock markets in current account dynamics : a time-series approach / prepared by Benoît Mercereau
Published [Washington, D.C.] : International Monetary Fund, [2004]
Online access available from:
IMF eLibrary    View Resource Record  


Description 1 online resource (30 pages) : illustrations
Series IMF working paper ; WP/04/50
IMF working paper ; WP/04/50
Summary This paper develops a simple model to study the impact of stock markets on the current account. A closed-form solution for the current account is derived from the optimal portfolio and consumption/saving choices of a representative agent. Formally, the model can be seen as a stock market-augmented version of the "fundamental equation of the current account" popularized by Jeffrey Sachs. It appears to shed light on recent developments in the U.S. current account deficit. The model also shows how the current account may help predict future stock market performance and/or endowment streams
Bibliography Includes bibliographical references (pages 28-30)
Notes Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. MiAaHDL
digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL
Print version record
Subject Balance of payments -- United States -- Econometric models.
Economic forecasting -- Econometric models.
Stock exchanges -- Econometric models.
Form Electronic book
Author International Monetary Fund. Asia and Pacific Department, issuing body
ISBN 1281355771