Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper uses an intertemporal model of the current account and macroeconomic indicators to examine the size and sustainability of Nigerian current account deficits over the 1960-97 period. The results indicate that the Nigerian economy appeared to satisfy its intertemporal budget constraint during this period. However there were years marked by excessive current account deficits. The results also support the view that current account deficits accompanied by macroeconomic instability and structural weaknesses can degenerate in to an external crisis.

Exports and Imports --- Current Account Adjustment --- Short-term Capital Movements --- Open Economy Macroeconomics --- International Lending and Debt Problems --- International economics --- Current account --- Current account deficits --- Current account balance --- External debt --- Current account surpluses --- Balance of payments --- Debts, External --- Nigeria

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper examines the external sustainability and competitiveness of Benin’s economy. Balance of payments flows suggest Benin’s external position is sustainable. Large trade and current account deficits are comfortably financed by inflows through the capital and financial accounts, in particular project grants and loans, private capital, and inflows to commercial banks. It is estimated that Benin could sustain a net foreign liability position in the range of 40–60 percent of GDP, corresponding to current account deficits of 3–5 percent of GDP.

Exports and Imports --- Foreign Exchange --- Current Account Adjustment --- Short-term Capital Movements --- Currency --- Foreign exchange --- International economics --- Real effective exchange rates --- Real exchange rates --- Current account balance --- Current account deficits --- Current account --- Balance of payments --- Benin

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Although capital inflows are generally beneficial to recipient countries, they also pose a challenge for the conduct of economic policy. This paper proposes a conceptual taxonomy to guide the design of policy responses in the face of capital flows. We explore how responses to capital surges should be differentiated based on the source of balance of payments pressures. We also examine whether the policy choices in emerging market countries conform to the taxonomy's predictions and find some correspondence, especially during periods of high global liquidity.

Exports and Imports --- Current Account Adjustment --- Short-term Capital Movements --- International Investment --- Long-term Capital Movements --- Open Economy Macroeconomics --- International economics --- Capital inflows --- Capital flows --- Current account surpluses --- Current account deficits --- Current account balance --- Balance of payments --- Capital movements --- Turkey

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Following the breakup of the Soviet Union in 1992, several low-income countries in the Commonwealth of Independent States (CIS) accumulated substantial external debt in a short time span, about half of which is owed to multilateral financial institutions. Three factors contributed to the current debt burden. First, the initial years of transition brought large systemic economic disruptions, loss of transfers from the center and collapse of trade relations among Council for Mutual Economic Assistance (CMEA) countries, and negative terms of trade shocks. Second, fiscal and other reforms, and consequently, growth revival, took longer than expected. Third, overoptimism by multilaterals contributed to the high debt levels. If external financial assistance, which was needed because of high social costs of the transition, had come in the form of grants in the first two or three years of the transition, the debt burden would have been lower and sustainable.

Debts, External --- Debts, External. --- Debts, Foreign --- Debts, International --- External debts --- Foreign debts --- International debts --- Debt --- International finance --- Investments, Foreign --- Exports and Imports --- Current Account Adjustment --- Short-term Capital Movements --- International Lending and Debt Problems --- International economics --- External debt --- Current account deficits --- Current account balance --- Current account --- Current account imbalances --- Balance of payments --- United States

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper compares two approaches for examining the extent to which a country’s actual real effective exchange rate is consistent with economic fundamentals: the FEER approach, which involves calculating the real exchange rate that equates the current account at full employment with sustainable net capital flows, and the BEER approach, which uses econometric methods to establish a behavioral link between the real rate and relevant economic variables. An exchange rate model is estimated for the G-3 currencies to provide illustrative comparisons of BEERs and FEERs.

Exports and Imports --- Foreign Exchange --- Current Account Adjustment --- Short-term Capital Movements --- Open Economy Macroeconomics --- Currency --- Foreign exchange --- International economics --- Real exchange rates --- Exchange rates --- Current account --- Real effective exchange rates --- Capital account --- Balance of payments --- United States