Adjustment of US External Imbalances: At What Horizon?

Panagiotis Th. Konstantinou ()
Additional contact information
Panagiotis Th. Konstantinou: Department of Economics, University of Macedonia

Discussion Paper Series from Department of Economics, University of Macedonia

Abstract: The relative importance of the trade and financial (valuation) channels for correcting cyclical external imbalances of the US is examined, with the contribution of each component broken–down by horizon. The evidence presented demonstrate that valuation effects contribute to cyclical external adjustments for horizons less than six quarters. The bulk of cyclical imbalances are shown to be corrected by trade flows, which operate at short– to medium–term horizons, and there seems to be no long-run contribution to the process of cyclical external adjustment.

Keywords: international financial adjustment; external imbalances (search for similar items in EconPapers)
JEL-codes: C22 F32 F41 (search for similar items in EconPapers)
Date: 2008-12, Revised 2008-12
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://aphrodite.uom.gr/econwp/pdf/wp0818.pdf
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to aphrodite.uom.gr:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mcd:mcddps:2008_18

Access Statistics for this paper

More papers in Discussion Paper Series from Department of Economics, University of Macedonia
Bibliographic data for series maintained by Theodore Panagiotidis () and Anastasia Litina ().