Current Account Imbalances: Can Structural Policies Make a Difference?
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Bibliographic Details
Main Author: Ivanova, Anna (Author)
Format: Electronic eBook
Language:English
Published: Washington, D.C International Monetary Fund 2012
Series:IMF Working Papers Working Paper No. 12/61
Links:http://elibrary.imf.org/view/IMF001/12662-9781463937799/12662-9781463937799/12662-9781463937799.xml
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http://elibrary.imf.org/view/IMF001/12662-9781463937799/12662-9781463937799/12662-9781463937799.xml
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Abstract:The discussion of global and regional imbalances has put the spotlight on the possible link between current accounts and structural policies. Drawing on standard empirical current account models, the paper finds that the commonly recommended structural factors cannot explain the widening of imbalances prior to the 2008 - 09 crisis. That said, structural factors do help explain some part of long-standing cross-country differences in the current account levels. In particular, countries with stricter credit market regulation, higher taxes on businesses, lower minimum wage (in particular,in slow growing economies) and generous unemployment benefits tend to have higher current account balances than others
Physical Description:1 Online-Ressource (35 p)
ISBN:1463937792
9781463937799