Macroeconomic uncertainty, precautionary savings, and the current account /

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Bibliographic Details
Author / Creator:Ghosh, Atish R., author.
Imprint:[Washington, D.C.?] : International Monetary Fund, Research Department, ©1992.
Description:1 online resource (ii, 24 [i.e. 32] pages) : illustrations.
Series:IMF working paper ; WP/92/72
IMF working paper ; WP/92/72.
Subject:Saving and investment.
Rational expectations (Economic theory)
Rational expectations (Economic theory)
Saving and investment.
Format: E-Resource Book
URL for this record:
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Other authors / contributors:Ostry, Jonathan David, 1962- author.
International Monetary Fund. Research Department, issuing body.
Notes:Cover title.
At head of title: International Monetary Fund, Research Department.
"Authorized for distribution by Malcolm Knight, September 1992."
Includes bibliographical references (pages 23-24).
Print version record.
Summary:The relationship between current account developments and changes in the macroeconomic environment remains a key issue in open economy macroeconomics. This paper extends the standard intertemporal optimizing model of the current account to incorporate the effects of macroeconomic uncertainty on private savings behavior. It is shown that the greater the uncertainty in nominal cash flow, defined as output less investment savings and, other things equal, the larger is the current account surplus. Empirical support for the model is found using quarterly data from four large industrial countries.
Other form:Print version: Ghosh, Atish R. Macroeconomic uncertainty, precautionary savings, and the current account. [Washington, D.C.?] : International Monetary Fund, ©1992