Series: IMF Working Papers
Author(s): Juliana Araujo , Bin Li , Marcos Poplawski-Ribeiro , and Luis-Felipe Zanna
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 27 March 2013
Keywords: External Sustainability, Developing Economies, current account balances, current account balance, current account deficits, current account surpluses, Open Economy Macroeconomics, Cooperative Enterprises,
The permanent income hypothesis implies that frictionless open economies with exhaustible natural resources should save abroad most of their resource windfalls and, therefore, feature current account surpluses. Res...