 The Intertemporal Approach to the Current Account: Evidence for ArgentinaJournal of Applied Economics, 2008, vol. 11, issue 2, 327-353 Abstract: The Argentinean current account has exhibited large fluctuations over time. Sizable deficits over the last part of the 19th century and beginning of the 20th were followed by an almost equilibrated balance for most of the 20th century. Moderate deficits were again recorded between 1990 and 2002. Can factors highlighted by the intertemporal approach to the current account explain the dynamics of the Argentinean external sector for the 1885–2002 period? To answer this question we make use of a model featuring two main external shocks for small economies: real interest rates and exchange rates. In contrast to its application to other Latin American countries, the intertemporal model does not track well the actual current account from 1885 to 2002 in Argentina. This is due to the country's lack of access to the international financial system (a main assumption in the model), the occurrence of balance of payments crises, and the stop and go process. There is, however, some evidence in favor of the theory for the period 1885–1930, when capital mobility was relatively high and free of currency crises and stop and go cycles. Date: 2008 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:recsxx:v:11:y:2008:i:2:p:327-353 Ordering information: This journal article can be ordered from DOI: 10.1080/15140326.2008.12040510 Access Statistics for this article Journal of Applied Economics is currently edited by Jorge M. Streb More articles in Journal of Applied Economics from Taylor & Francis Journals |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.