IMF Working Papers

Current Account Sustainability: Selected East Asian and Latin American Experiences

By Assaf Razin, Gian M Milesi-Ferretti

October 1, 1996

Preview Citation

Format: Chicago

Assaf Razin, and Gian M Milesi-Ferretti. Current Account Sustainability: Selected East Asian and Latin American Experiences, (USA: International Monetary Fund, 1996) accessed December 22, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

A number of developing countries have run large and persistent current account deficits in both the late seventies/early eighties and in the early nineties, raising the issue of whether these persistent imbalances are sustainable. This paper puts forward a notion of current account sustainability and compares the experience of three Latin American countries-Chile, Colombia Mexico-and three East Asian countries-Korea, Malaysia and Thailand. It identifies a number of potential sustainability indicators and discusses their usefulness in predicting external crises.

Subject: Balance of payments, Current account, Current account deficits, Current account imbalances, External debt, Foreign exchange, Real exchange rates

Keywords: Borrowing firm, Current account, Current account deficits, Current account imbalances, Debt flow, Debt neutrality result, Debtor country, Decision of a representative firm, East Asia, Exchange rate, External shock, Foreign direct investment, Investment decision, Present discounted value, Real exchange rates, Representative firm, Short-term debt, Terms of trade, World debt table, WP

Publication Details

  • Pages:

    50

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1996/110

  • Stock No:

    WPIEA1101996

  • ISBN:

    9781451853292

  • ISSN:

    1018-5941

You May Also Be Interested In...

How Has Dollarization Served Timor-Leste So Far?

December 20, 2024

Ukraine: Sixth Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for Modification of a Performance Criterion, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Ukraine

December 20, 2024

Islamic Republic of Mauritania: Staff Report for the 2024 Article IV Consultation, Third Review Under the Arrangements Under the Extended Credit Facility and Extended Fund Facility, Request for Modification of Quantitative Performance Criteria, and Second Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for the Islamic Republic of Mauritania

December 20, 2024

On Cross-Border Crypto Flows: Measurement Drivers and Policy Implications

December 20, 2024