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Sustainable and Excessive Current Account Deficits

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  • Helmut Reisen

Abstract

The abundance of private capital flows confronts many emerging-market authorities with a transfer problem. They must decide whether to accept or resist the net capital inflow, or how much to accept and how much to resist. This paper aims at assisting that decision by focusing on the rationale, the sustainability and the source of protracted private-sector driven current account deficits.
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  • Helmut Reisen, 1998. "Sustainable and Excessive Current Account Deficits," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 25(2), pages 111-131, January.
    • Handle: RePEc:kap:empiri:v:25:y:1998:i:2:p:111-131
    DOI: 10.1023/A:1006850620095
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    More about this item

    Keywords

    Current account deficits; private capital flows;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements

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