NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Aspects of the Current Account Behavior of OECD Economies

Jeffrey D. Sachs

NBER Working Paper No. 859
Issued in February 1982
NBER Program(s):International Trade and Investment, International Finance and Macroeconomics

This essay examines some aspects of capital flows within the OECD, and outlines a framework for analyzing current account movements. In both the theoretical and empirical sections, I argue for the importance of including investment and growth in analyses of the current account. I present empirical evidence confirming that shifts in investment rates explain a large part of recent OECD current account behavior. In addition, the links in theory and practice between exchange rates and the current account are scrutinized. A link between current account deficits and depreciation is evident for the large OECD economies, but not for many smaller European economies. It appears that the exchange rate behavior in the smaller economies can be explained by specific exchange rate policies in these economies.

download in pdf format
   (374 K)

download in djvu format
   (275 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w0859

Users who downloaded this paper also downloaded* these:
Costa Conclusion
Bhattacharya, Roberts, and Sweeting w19352 Regulating Bidder Participation in Auctions
Fair w0015 A Comparison of FIML and Robust Estimates of a Nonlinear Macroeconomic Model
Holland and Yates w19780 Optimal Trading Ratios for Pollution Permit Markets
Hurd and Rohwedder w9586 The Retirement-Consumption Puzzle: Anticipated and Actual Declines in Spending at Retirement
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us