Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/97770
Authors: 
Berg, Tim Oliver
Year of Publication: 
2009
Series/Report no.: 
IMFS Working Paper Series 22
Abstract: 
This paper explores the relationship between equity prices and the current account for 17 industrialized countries in the period 1980-2007. Based on a panel vector autoregression, I compare the effects of equity price shocks to those originating from monetary policy and exchange rates. While monetary policy shocks have a limited impact, shocks to equity prices have sizeable effects. The results suggest that equity prices impact on the current account through their effects on real activity and exchange rates. Furthermore, shocks to exchange rates play a key role as well. Keywords: current account fluctuations, equity prices, panel vector autoregression
Subjects: 
current account fluctuations
equity prices
panel vector autoregression
JEL: 
C33
E44
F32
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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