Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/53701
Authors: 
Eichengreen, Barry
Rua, Gisela
Year of Publication: 
2011
Series/Report no.: 
ADBI working paper series 278
Abstract: 
This paper considers the general equilibrium relationship between exchange rates and global imbalances. It emphasizes that the exchange rate is not a primitive but an equilibrium price determined by the policy mix. It uses extensions of the two-country Obstfeld-Rogoff model to analyze the response of imbalances and real exchange rates to shocks. Finally, it analyzes the characteristics of episodes in which chronic current account surpluses (as opposed to deficits) come to an end.
JEL: 
F0
F3
F4
Document Type: 
Working Paper

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