| Description |
1 online resource (29 pages) : color illustrations |
| Series |
IMF working paper ; WP/08/260 |
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IMF working paper ; WP/08/260.
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| Contents |
I. Introduction; II. The Current Account Balance and The International Investment Position; III. Some stylized Facts on the dollar and the U.S. current account; A. Two Dollar Cycle Episodes; B.A Comparison Between 2 Adjustment Episodes; IV. Reconciling Prices and Quantities; A. Is the REER Mismeasured? The WARP Argument; B. Is The U.S. Current Account Deficit Overstated?; C. Adjustment Lags; D. The Terms of Trade and Oil Prices; E. External Adjustment and Shift in Relative Prices; V. Conclusions; Tables; 1. Historical Patterns of U.S. Dollar Real Depreciations (1973-2008) |
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2. Historical Patterns of U.S. Dollar Nominal Depreciations (1976-2008)3. The U.S. Current Account Balance and Oil Prices during the Adjuntment Episodes; 4. Cumulative Financial Flows and Changes in the U.S. International Investment Position; Figures; 1. Real Effective Exchange Rate, January 1973-September 2008; 2. Current Account Balance and Non-Oil Balance on Goods and Services (ratio of GDP, 1970Q1-2008Q2); 3. Real Effective Exchange Rate and ""WARP"" Index; 4. Lagged ""WARP"" Index and Non-Oil Balance of Goods and Services |
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5. Non-Oil Trade Balance and Real Exchange Rate: Cross-Correlation (1978Q1-2008Q2)6. Terms of Trade and Oil Prices, 1973-2008; References |
| Summary |
The real effective exchange rate of the dollar is close to its minimum level for the past 4 decades (as of September 2008). At the same time, however, the U.S. trade and current account deficits remain large and, absent a significant correction in coming years, would contribute to a further accumulation of U.S. external liabilities. The paper discusses the tension between these two aspects of the dollar assessment, and what factors can help reconcile them. It focuses in particular on the terms of trade, adjustment lags, and measurement issues related to both the real effective exchange rate and the current account balance |
| Notes |
At head of title: Research Department |
|
"November 2008." |
| Bibliography |
Includes bibliographical references (pages 26-29) |
| Notes |
Print version record |
| Subject |
Dollar, American.
|
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Foreign exchange rates -- United States
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Balance of payments -- United States
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Budget deficits -- United States
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Balance of payments
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Budget deficits
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Dollar, American
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Foreign exchange rates
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United States
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| Form |
Electronic book
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| Author |
International Monetary Fund. Research Department.
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| ISBN |
1282842110 |
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9781282842113 |
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9781451871180 |
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145187118X |
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9781451915716 |
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1451915713 |
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