Date: 2003
Type: Article
International Macroeconomic Fluctuations and the Current Account
The Canadian Journal of Economics, 2003, 36, 2, 401-420
HOFFMANN, Mathias, International Macroeconomic Fluctuations and the Current Account, The Canadian Journal of Economics, 2003, 36, 2, 401-420
- https://hdl.handle.net/1814/23755
Retrieved from Cadmus, EUI Research Repository
Intertemporal models of the current account generally assume that global shocks do not affect the current account. We use this assumption to identify global and country-specific shocks in a bivariate VAR of output and the current account. Cross-country evidence from the G7 economies suggests that this identification works surprisingly well. We then employ our method to collect stylized facts on international macroeconomic fluctuations. We find that long-term output growth is driven mainly by global factors in most G7 countries and that country-specific shocks are less persistent and generally less volatile than global shocks.
Cadmus permanent link: https://hdl.handle.net/1814/23755
Full-text via DOI: 10.1111/1540-5982.t01-1-00006
ISSN: 0008-4085; 1540-5982
Earlier different version: http://hdl.handle.net/1814/4955
Version: The article is a revised version of a chapter of the author's EUI PhD thesis, 1999.
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