Exchange Rates and Global Rebalancing
AbstractThis paper considers the general equilibrium relationship between exchange rates and global imbalances. It emphasizes that the exchange rate is not a primitive but an equilibrium price determined by the policy mix. It uses extensions of the two-country Obstfeld-Rogoff model to analyze the response of imbalances and real exchange rates to shocks. Finally, it analyzes the characteristics of episodes in which chronic current account surpluses (as opposed to deficits) come to an end.
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Bibliographic InfoPaper provided by Asian Development Bank Institute in its series ADBI Working Papers with number 278.
Length: 48 pages
Date of creation: 13 Apr 2011
Date of revision:
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More information through EDIRC
global imbalances; exchange rates; current account; economic rebalancing; global rebalancing;
Other versions of this item:
- Barry Eichengreen & Gisela Rua, 2011. "Exchange Rates and Global Rebalancing," Finance Working Papers 23258, East Asian Bureau of Economic Research.
- Barry Eichengreen & Gisela Rua, 2011. "Exchange Rates and Global Rebalancing," Macroeconomics Working Papers 23258, East Asian Bureau of Economic Research.
- F00 - International Economics - - General - - - General
- F30 - International Economics - - International Finance - - - General
- F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-04-23 (All new papers)
- NEP-CBA-2011-04-23 (Central Banking)
- NEP-DGE-2011-04-23 (Dynamic General Equilibrium)
- NEP-IFN-2011-04-23 (International Finance)
- NEP-OPM-2011-04-23 (Open Economy Macroeconomic)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Leo de Haan & Hubert Schokker & Anastassia Tcherneva, 2008.
"What Do Current Account Reversals in OECD Countries Tell Us About the US Case?,"
The World Economy,
Wiley Blackwell, vol. 31(2), pages 286-311, 02.
- Leo de Haan & Hubert Schokker & Anastassia Tcherneva, 2006. "What do current account reversals in OECD countries tell us about the US case?," DNB Working Papers 111, Netherlands Central Bank, Research Department.
- Laurenceson, J. & Qin, F., 2005. "China's Exchange Rate Policy: The Case Against Abandoning the Dollar PEG," Discussion Paper 2005-70, Tilburg University, Center for Economic Research.
- Levy, Philip, 2011.
"The United States and the PRC: Macroeconomic Imbalances and Economic Diplomacy,"
ADBI Working Papers
328, Asian Development Bank Institute.
- Philip Levy, 2011. "The United States and the PRC : Macroeconomic Imbalances and Economic Diplomacy," Macroeconomics Working Papers 23208, East Asian Bureau of Economic Research.
- Philip Levy, 2011. "The United States and the PRC : Macroeconomic Imbalances and Economic Diplomacy," Governance Working Papers 23208, East Asian Bureau of Economic Research.
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