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Adjustment of US external imbalances: At what horizon?

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  • Konstantinou, Panagiotis Th.

Abstract

The relative contribution of the trade and financial channels for correcting cyclical external imbalances of the US is decomposed by horizon. Valuation effects contribute for horizons up to a year, while trade flows for horizons up to 4Â years.

Suggested Citation

  • Konstantinou, Panagiotis Th., 2010. "Adjustment of US external imbalances: At what horizon?," Economics Letters, Elsevier, vol. 106(3), pages 166-168, March.
    • Handle: RePEc:eee:ecolet:v:106:y:2010:i:3:p:166-168
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    More about this item

    Keywords

    External imbalances International financial adjustment Valuation and trade channel of external adjustment;

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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