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Current Account Sustainability: Selected East Asian and Latin American Experiences

  • Gian Maria Milesi-Ferrett
  • Assaf Razin

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 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 National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5791.

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Date of creation: Oct 1996
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Publication status: published as Princeton Studies in International Finance, no. 81, (October 1996).
Handle: RePEc:nbr:nberwo:5791
Note: IFM
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