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The External Balance Assessment Methodology: 2018 Update

Author

Listed:
  • Mr. Pau Rabanal
  • Luciana Juvenal
  • Mai Dao
  • Gustavo Adler
  • Ms. Carolina Osorio Buitron
  • Jair Rodriguez
  • Ms. Nan Li
  • Mrs. Swarnali A Hannan
  • Signe Krogstrup
  • Mr. Daniel Garcia-Macia
  • Callum Jones
  • Cyril Rebillard
  • Kyun Suk Chang
  • Deepali Gautam
  • Zijiao Wang
  • Mr. Luis M. Cubeddu

Abstract

The assessment of external positions and exchange rates is a key mandate of the IMF. This paper presents the updated External Balance Assessment (EBA) framework—a key input in the conduct of multilaterally-consistent external sector assessments of 49 advanced and emerging market economies—following the two rounds of refinements adopted since the framework was introduced in 2012 (as described in Phillips et al., 2013). It also presents new complementary tools for shedding light on the role of structural factors in explaining external imbalances and assessing potential biases in the measurement of external positions. Remaining challenges and areas of future work are also discussed.

Suggested Citation

  • Mr. Pau Rabanal & Luciana Juvenal & Mai Dao & Gustavo Adler & Ms. Carolina Osorio Buitron & Jair Rodriguez & Ms. Nan Li & Mrs. Swarnali A Hannan & Signe Krogstrup & Mr. Daniel Garcia-Macia & Callum Jo, 2019. "The External Balance Assessment Methodology: 2018 Update," IMF Working Papers 2019/065, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:2019/065
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    19. Gustavo Adler & Signe Krogstrup & Mr. Daniel Garcia-Macia, 2019. "The Measurement of External Accounts," IMF Working Papers 2019/132, International Monetary Fund.
    20. Gnimassoun, Blaise, 2015. "The importance of the exchange rate regime in limiting current account imbalances in sub-Saharan African countries," Journal of International Money and Finance, Elsevier, vol. 53(C), pages 36-74.
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