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Current Account Sustainability: Selected East Asian and Latin American Experiences

  • Milesi-Ferretti, Gian Maria
  • Razin, Assaf

A number of developing countries have run large and persistent current account deficits in both the late-1970s/early-1980s and in the early-1990s, raising the issue of whether these persistent imbalances are sustainable. This paper puts forward a notion of current account sustainability and compares the experience of three Latin American countries – Chile, Colombia and Mexico – and three East Asian countries – Korea, Malaysia and Thailand. It identifies a number of potential sustainability indicators and discusses their usefulness in predicting external crises.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1509.

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Date of creation: Nov 1996
Date of revision:
Handle: RePEc:cpr:ceprdp:1509
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