The Usa As The 'Demander Of Last Resort' And The Implications For China'S Current Account
AbstractThe present paper evaluates the current account patterns of 69 countries during 1981-2006. We identify an asymmetric effect of the USA as the 'demander of last resort': a 1% increase in the lagged US imports/GDP is associated with a 0.3% increase in current account surpluses of countries running surpluses, but results in insignificant changes in the current accounts of countries running deficits. The impact of US demand variables is larger on the current accounts of developing countries than that of OECD countries. We also contemplate China's current account over the next 6�years, and project a large drop in its current account/GDP surpluses. Copyright 2009 The Authors. Journal compilation 2009 Blackwell Publishing Asia Pty Ltd
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Pacific Economic Review.
Volume (Year): 14 (2009)
Issue (Month): 3 (08)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1361-374X
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- Joshua Aizenman & Yothin Jinjarak & Nancy Marion, 2014.
"China’s Growth, Stability, and Use of International Reserves,"
Open Economies Review,
Springer, vol. 25(3), pages 407-428, July.
- Joshua Aizenman & Yothin Jinjarak & Nancy P. Marion, 2013. "China's Growth, Stability, and Use of International Reserves," NBER Working Papers 19739, National Bureau of Economic Research, Inc.
- Steiner, Andreas, 2014. "Current account balance and dollar standard: Exploring the linkages," Journal of International Money and Finance, Elsevier, vol. 41(C), pages 65-94.
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