Consumption-Based Interest Rate and the Present-Value Model of the Current Account-Evidence from Nigeria »
Series: IMF Working Papers
Author(s): Olumuyiwa Adedeji
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 August 2001
Keywords: Present-value model, consumption-based interest rate, current account, current account balance, current accounts, external shocks, balance of payments, Open Economy Macroeconomics,
This paper presents a model of current account determination, based upon the permanent-income hypothesis. A present-value relationship among the current account, changes in net output, the exchange rate and the ter...