2007 Student Research Conference:
20th Annual Student Research Conference

Social Science

The Sustainability of Current Account Imbalances
Steven J. Bosworth
Dr. Xiaofen Chen, Faculty Mentor

Theoretically, current account surpluses and deficits should reverse themselves in the long run, as prices and exchange rates adjust. However, some nations carry current account surpluses or deficits for much longer than others. This study will examine the duration of current account surpluses and deficits and what factors can determine the sustainability of either a current account deficit or surplus. Macroeconomic variables such as interest rates, inflation and growth will be investigated as possible factors, but special cases will be accommodated given a country’s unique situation.

Keywords: Economics, Trade, Current Account, Deficit/Surplus, Interest Rate, Inflation


Presentation Type: Oral Paper

Session: 33-2
Location: VH 1412
Time: 10:00 am

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