Current Acounts in Debtor and Creditor Countries

Aart Kraay () and Jaume Ventura

Working papers from Massachusetts Institute of Technology (MIT), Department of Economics

Abstract: This paper reexamines a classic question in international economics: What is the current account response to a transitory income shock such as a temporary improvement in the terms of trade, a tranfer form abroad or unusually high production? To answer this question, we construct a world equilibrium model in which productivity varies across countries and international borrowing and lending takes place to exploit a good investment opportunities.

Keywords: INTERNATIONAL ECONOMY; TERMS OF TRADE (search for similar items in EconPapers)
JEL-codes: F40 F47 (search for similar items in EconPapers)
Pages: 42 pages
Date: 1997
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Citations: View citations in EconPapers (4)

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Journal Article: Current Accounts in Debtor and Creditor Countries (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:mit:worpap:97-12

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