Current Account and Transitory Deviations of Terms of Trade and Export Volumes: Chile 1985-1999

Jaime Guajardo M. and Guillermo Le Fort V.
Authors registered in the RePEc Author Service: Guillermo Le Fort Varela

Journal Economía Chilena (The Chilean Economy), 1999, vol. 2, issue 3, 005-026

Abstract: To limit the risks of a sudden stop in external financing that would jeopardize intertemporal consumption smoothing, the current account deficit should be limited to sustainable levels. However, the volatility of the terms of trade and some export volumes cause difficulties in assessing a sustainable current account level. This paper provides a “trend indicator” for the current account based on “normalized” external prices and export volumes. Thus the exercise allows evaluating, in a simple and timely fashion, whether the deficit level is sustainable and, if not, demand adjustment measures are needed to correct it.

Date: 1999
References: Add references at CitEc
Citations:

Downloads: (external link)
https://si2.bcentral.cl/public/pdf/revista-economi ... 3dic1999p005-026.pdf (application/pdf)

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:chb:bcchec:v:2:y:1999:i:3:p:005-026

Access Statistics for this article

Journal Economía Chilena (The Chilean Economy) is currently edited by Álvaro Aguirre, Sofía Bauducco and Andrés Fernández

More articles in Journal Economía Chilena (The Chilean Economy) from Central Bank of Chile Contact information at EDIRC.
Bibliographic data for series maintained by Fredherick Sanllehi ().