TY - BOOK ID - 84542662 TI - On Cyclicality in the Current and Financial Accounts : Evidence from Nine Industrial Countries AU - Clausen, Jens. AU - Kandil, Magda. PY - 2005 SN - 146232259X 1451996446 1282003410 9786613795632 1451906110 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Balance of payments -- Developed countries. KW - Electronic books. -- local. KW - Exports -- Developed countries. KW - Imports -- Developed countries. KW - Exports and Imports KW - Inflation KW - Current Account Adjustment KW - Short-term Capital Movements KW - Price Level KW - Deflation KW - International economics KW - Finance KW - Macroeconomics KW - Current account balance KW - Financial account KW - Current account KW - Current account deficits KW - Balance of payments KW - International finance KW - Prices KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:84542662 AB - The paper investigates cyclical fluctuations in the current and financial (formerly capital) accounts of the balance of payments and major underlying components for nine industrial countries. The empirical model uses as explanatory variables domestic output growth, price inflation, real exchange rate fluctuations, energy price inflation, global growth, and regional growth. The evidence from the estimation of the model indicates the importance of fluctuations in output growth to the cyclicality of the current and financial account balances. The necessary and sufficient condition to sustain a large current account deficit is high domestic growth, which tends to stimulate financial inflows and provides adequate resources for financing. Other factors appear to be less important to the cyclicality of the current and financial account balances and their negative correlations. ER -