Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/53126
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dc.contributor.authorKörner, Finn Martenen_US
dc.date.accessioned2011-12-12en_US
dc.date.accessioned2011-12-14T10:28:06Z-
dc.date.available2011-12-14T10:28:06Z-
dc.date.issued2011-07en_US
dc.identifier.urihttp://hdl.handle.net/10419/53126-
dc.description.abstractGlobal imbalances are almost universally regarded as a disequilibrium phenomenon. Caballero, Farhi, and Gourinchas (2008) challenge this notion with their dynamic general equilibrium model of global imbalances. The authors conclude that current account deficit nations need not worry about long-lasting deficits as long as the model is in equilibrium. The joint model in this paper combines the two model extensions for exchange rates and FDI which are disjunct in the original model. An analytical solution to the new joint model is neither as straightforward as for the separate models nor can previous results from calibrated simulation be confirmed without restriction. The model is highly dependent on parameter assumptions: A variation of calibrated parameters highlights the prime impact of investment costs previously assumed away. Sustainable equilibrium paths for global imbalances are much narrower in updated simulations than previously predicted. Policy recommendations on the sustainability of international debt holdings therefore need to be a lot more cautious.en_US
dc.language.isoengen_US
dc.publisher|aUniv. |cStuttgart-Hohenheimen_US
dc.relation.ispartofseries|aSchriftenreihe des Promotionsschwerpunkts Globalisierung und Beschäftigung // Evangelisches Studienwerk e.V. |x33/2011en_US
dc.subject.jelF31en_US
dc.subject.jelF34en_US
dc.subject.jelG15en_US
dc.subject.jelO41en_US
dc.subject.ddc330en_US
dc.subject.keywordinternational debten_US
dc.subject.keywordfinancial market developmenten_US
dc.subject.keywordforeign direct investmenten_US
dc.subject.keywordreal exchange rateen_US
dc.subject.keywordinternational macro-financeen_US
dc.titleAn equilibrium model of 'global imbalances' revisiteden_US
dc.typeWorking Paperen_US
dc.identifier.ppn679522034en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:hohpro:332011-

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