Global Rebalancing with Gravity: Measuring the Burden of Adjustment
Robert Dekle (),
Jonathan Eaton () and
Samuel Kortum ()
IMF Staff Papers, 2008, vol. 55, issue 3, pages 511-540
This paper uses a 42-country model of production and trade to assess the implications of eliminating current account imbalances for relative wages, relative GDPs, real wages, and real absorption. How much relative GDPs need to change depends on flexibility of two forms: factor mobility and adjustment in sourcing of imports, with more flexibility requiring less change. At the extreme, U.S. GDP falls by 30 percent relative to the world's. Because of the pervasiveness of nontraded goods, however, most domestic prices move in parallel with relative GDP, so that changes in real GDP are small. IMF Staff Papers (2008) 55, 511–540. doi:10.1057/imfsp.2008.17; published online 24 June 2008
References: Add references at CitEc
Citations View citations in EconPapers (52) Track citations by RSS feed
Downloads: (external link)
http://www.palgrave-journals.com/imfsp/journal/v55/n3/pdf/imfsp200817a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/imfsp/journal/v55/n3/full/imfsp200817a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.
Working Paper: Global Rebalancing with Gravity: Measuring the Burden of Adjustment (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:pal:imfstp:v:55:y:2008:i:3:p:511-540
Ordering information: This journal article can be ordered from
Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK
http://www.palgrave- ... subscribe/index.html
Access Statistics for this article
IMF Staff Papers is currently edited by July
More articles in IMF Staff Papers from Palgrave Macmillan
Series data maintained by Iulia Badea ().