IMF Working Papers

The External Balance Assessment Methodology: 2018 Update

By Luis M. Cubeddu, Signe Krogstrup, Gustavo Adler, Pau Rabanal, Mai Dao, Swarnali A Hannan, Luciana Juvenal, Carolina Osorio Buitron, Cyril Rebillard, Daniel Garcia-Macia, Callum Jones, Jair Rodriguez, Kyun Suk Chang, Deepali Gautam, Zijiao Wang, Nan Li

March 19, 2019

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Luis M. Cubeddu, Signe Krogstrup, Gustavo Adler, Pau Rabanal, Mai Dao, Swarnali A Hannan, Luciana Juvenal, Carolina Osorio Buitron, Cyril Rebillard, Daniel Garcia-Macia, Callum Jones, Jair Rodriguez, Kyun Suk Chang, Deepali Gautam, Zijiao Wang, and Nan Li. The External Balance Assessment Methodology: 2018 Update, (USA: International Monetary Fund, 2019) accessed December 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

The assessment of external positions and exchange rates is a key mandate of the IMF. This paper presents the updated External Balance Assessment (EBA) framework—a key input in the conduct of multilaterally-consistent external sector assessments of 49 advanced and emerging market economies—following the two rounds of refinements adopted since the framework was introduced in 2012 (as described in Phillips et al., 2013). It also presents new complementary tools for shedding light on the role of structural factors in explaining external imbalances and assessing potential biases in the measurement of external positions. Remaining challenges and areas of future work are also discussed.

Subject: Balance of payments, Capital controls, Current account, Current account balance, External balance assessment (EBA), External position, Foreign exchange, Real effective exchange rates

Keywords: Capital control, Capital control index, Capital controls, Current account, Current account balance, Current account gap, Current account level, Current account model, EBA current account balance assessment, EBA current account model, Exchange rate, Exchange rates, External balance assessment (EBA), External sustainability, Foreign exchange, Global, Global imbalances, Model residual, Potential GDP, Real effective exchange rates, Reer-index model, REER-Index model, WP

Publication Details

  • Pages:

    68

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2019/065

  • Stock No:

    WPIEA2019065

  • ISBN:

    9781498300933

  • ISSN:

    1018-5941

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