Series: IMF Working Papers
Author(s): Damiano Sandri , Pau Rabanal , and Isabelle Mejean
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 March 2011
Keywords: Rebalancing, Intermediate Inputs, terms of trade, tradable goods, exchange rate, export prices, Open Economy Macroeconomics, Macroeconomic Aspects of International Trade and Finance: Forecasting and Simulation,
A reduction in the U.S. current account deficit vis-à-vis emerging Asia involves a shift in demand from U.S. to emerging Asia tradable goods and a change in international relative prices. This paper quantifies the...