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The External Balance Assessment (EBA) Methodology

Author

Listed:
  • Steven T Phillips
  • Luis Catão
  • Luca A Ricci
  • Rudolfs Bems
  • Mitali Das
  • Julian Di Giovanni
  • Filiz D Unsal
  • Marola Castillo
  • Jungjin Lee
  • Jair Rodriguez
  • Mauricio Vargas

Abstract

The External Balance Assessment (EBA) methodology has been developed by the IMF’s Research Department as a successor to the CGER methodology for assessing current accounts and exchange rates in a multilaterally consistent manner. Compared to other approaches, EBA emphasizes distinguishing between the positive empirical analysis and the normative assessment of current accounts and exchange rates, and highlights the roles of policies and policy distortions. This paper provides a comprehensive description and discussion of the 2013 version (“2.0”) of the EBA methodology, including areas for its further development.

Suggested Citation

  • Steven T Phillips & Luis Catão & Luca A Ricci & Rudolfs Bems & Mitali Das & Julian Di Giovanni & Filiz D Unsal & Marola Castillo & Jungjin Lee & Jair Rodriguez & Mauricio Vargas, 2013. "The External Balance Assessment (EBA) Methodology," IMF Working Papers 13/272, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:13/272
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    Cited by:

    1. Fischer, Christoph & Hossfeld, Oliver, 2014. "A consistent set of multilateral productivity approach-based indicators of price competitiveness," Discussion Papers 10/2014, Deutsche Bundesbank.
    2. Alexei P Kireyev & Andrei Leonidov, 2016. "A Network Model of Multilaterally Equilibrium Exchange Rates," IMF Working Papers 16/130, International Monetary Fund.
    3. Jan Priewe, 2016. "The enigmatic dollar-euro exchange rate and the world's biggest forex market - performance, causes, consequences," IMK Studies 49-2016, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    4. Norbert Funke & Asel Isakova & Maksym Ivanyna, 2017. "Identifying Structural Reform Gaps in Emerging Europe, the Caucasus, and Central Asia," IMF Working Papers 17/82, International Monetary Fund.
    5. Blaise Gnimassoun, 2017. "Exchange rate misalignments and the external balance under a pegged currency system," Review of International Economics, Wiley Blackwell, vol. 25(5), pages 949-974, November.
    6. repec:mtp:titles:0262037165 is not listed on IDEAS
    7. Prilepskiy, Ilya, 2015. "The impact of fiscal policy on the current account balance and the real exchange rate," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 6, pages 7-23.
    8. Elisabeth Beusch & Barbara Döbeli & Andreas M. Fischer & Pinar Yeşin, 2017. "Merchanting and Current Account Balances," The World Economy, Wiley Blackwell, vol. 40(1), pages 140-167, January.
    9. International Monetary Fund, 2016. "Cabo Verde; 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Cabo Verde," IMF Staff Country Reports 16/366, International Monetary Fund.
    10. Fidora, Michael & Giordano, Claire & Schmitz, Martin, 2017. "Real exchange rate misalignments in the euro area," Working Paper Series 2108, European Central Bank.
    11. Pinar Yesin, 2016. "Exchange Rate Predictability and State-of-the-Art Models," Working Papers 2016-02, Swiss National Bank.
    12. Thierry Tressel & Shengzu Wang, 2014. "Rebalancing in the Euro Area and Cyclicality of Current Account Adjustments," IMF Working Papers 14/130, International Monetary Fund.
    13. Jan Behringer & Till van Treeck, 2015. "Income distribution and the current account: a sectoral perspective," Working Papers 379, ECINEQ, Society for the Study of Economic Inequality.
    14. Fischer, Christoph & Hossfeld, Oliver, 2014. "A consistent set of multilateral productivity approach-based indicators of price competitiveness – Results for Pacific Rim economies," Journal of International Money and Finance, Elsevier, vol. 49(PA), pages 152-169.
    15. repec:eee:wdevel:v:104:y:2018:i:c:p:257-270 is not listed on IDEAS
    16. Silvia Fabiani & Stefano Federico & Alberto Felettigh, 2016. "Adjusting the external adjustment: cyclical factors and the Italian current account," Questioni di Economia e Finanza (Occasional Papers) 346, Bank of Italy, Economic Research and International Relations Area.
    17. Melesse Tashu, 2015. "Drivers of Peru's Equilibrium Real Exchange Rate; Is the Nuevo Sol a Commodity Currency?," IMF Working Papers 15/26, International Monetary Fund.
    18. Gustavo Adler & Noemie Lisack & Rui Mano, 2015. "Unveiling the Effects of Foreign Exchange Intervention; A Panel Approach," IMF Working Papers 15/130, International Monetary Fund.
    19. Miles Workman, 2015. "Estimating the Cyclically- and Absorption-adjusted Fiscal Balance for New Zealand," Treasury Working Paper Series 15/09, New Zealand Treasury.
    20. Zorell, Nico, 2017. "Large net foreign liabilities of euro area countries," Occasional Paper Series 198, European Central Bank.
    21. repec:ukb:journl:y:2018:i:243:p:4-20 is not listed on IDEAS

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