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Global Imbalances and Petrodollars

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Author Info

  • Fuad Hasanov
  • Rabah Arezki

Abstract

Oil exporters have run large current account surpluses. We explore oil exporters'' role in our understanding and the resolution of global imbalances. Current account dynamics are estimated for oil-exporting countries and the rest of the world. We find that fiscal policy has a much stronger effect on current account of oil exporters than on current account of other countries. The current account adjustment of oil-exporting countries is also faster than that of other countries. We conclude that a change in fiscal policy of oil exporters can have significant and speedy impact on global imbalances.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 09/89.

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Length: 25
Date of creation: 01 Apr 2009
Date of revision:
Handle: RePEc:imf:imfwpa:09/89

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Keywords: Fiscal policy; Payments imbalances; Oil exporting countries; Oil prices; Oil revenues; Current account surpluses; oil exporters; exporters; exporting countries; oil-exporting countries; terms of trade; reer; trade openness; current account deficit; current account balance; real effective exchange rate; export volume; capital flows; oil exports; export price; import prices; oil exporter; export revenues; oil importers; world economy; trade shocks; commodity exporters; world exports; terms of trade shocks; world growth; export capital; nontradable goods; oil export revenues; exporter; aggregate demand; current account surplus; per capita growth rate; oil export; tradable goods; import price; financial crises; trade shock; trade deficits; trade impact; trade restrictions; international markets; output growth; oil exporting; open economy;

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Citations

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Cited by:
  1. Jean-Pierre Allegret & Cécile Couharde & Dramane Coulibaly & Valérie Mignon, 2013. "Current Accounts and Oil Price Fluctuations in Oil-Exporting Countries: the Role of Financial Development," Working Papers 2013-19, CEPII research center.
  2. Hacihasanoglu, Erk & Turhan, Ibrahim M. & Soytas, Ugur, 2012. "Oil prices and emerging market exchange rates," MPRA Paper 36477, University Library of Munich, Germany.
  3. Paul Cashin & Samya Beidas-Strom, 2011. "Are Middle Eastern Current Account Imbalances Excessive?," IMF Working Papers 11/195, International Monetary Fund.
  4. Coulibaly, Issiaka & Davis, Junior, 2013. "Exchange rate regimes and economic performance: Does CFA zone membership benefit their economies?," MPRA Paper 54075, University Library of Munich, Germany.

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