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Current Account Sustainability; Selected East Asian and Latin American Experiences

Listed author(s):
  • Assaf Razin
  • Gian M Milesi-Ferretti

A number of developing countries have run large and persistent current account deficits in both the late seventies/early eighties and in the early nineties, 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 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 International Monetary Fund in its series IMF Working Papers with number 96/110.

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Length: 50
Date of creation: 01 Oct 1996
Handle: RePEc:imf:imfwpa:96/110
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