The Leading eBooks Store Online 4,272,009 members ⚫ 1,419,367 ebooks

New to eBooks.com?

Learn more

On the Solvency of Nations: Are Global Imbalances Consistent with Intertemporal Budget Constraints?

On the Solvency of Nations: Are Global Imbalances Consistent with Intertemporal Budget Constraints? by Enrique G. Mendoza
Buy this eBook
US$ 9.00
(If any tax is payable it will be calculated and shown at checkout.)
Theory predicts that a nation's stochastic intertemporal budget constraint is satisfied if net exports (NX) and net foreign assets (NFA) satisfy an error-correction specification with a residual integrated of any finite order. We test this hypothesis using data for 21 industrial and 29 emerging economies for the 1970-2004 period to search for existence of negative relationship between NX and NFA. The results show that, despite the large global imbalances of recent years, NX and NFA positions are consistent with external solvency. Pooled Mean Group error-correction estimation yields evidence of a statistically significant, negative response of the NX-GDP ratio to the NFA-GDP ratio that is largely homogeneous across countries.
International Monetary Fund; February 2010
39 pages; ISBN 9781452746012
Read online, or download in secure EPUB or secure PDF format
Title: On the Solvency of Nations: Are Global Imbalances Consistent with Intertemporal Budget Constraints?
Author: Enrique G. Mendoza; Marco Terrones; Ceyhun Bora Durdu
 
ISBNs
145274601X
9781451963298
9781451988963
9781452746012