Series: IMF Working Papers
Author(s): Paul Cashin , and C. McDermott
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 December 1998
Keywords: Terms of trade, intertemporal elasticity of substitution, intratemporal elasticity of substitution, terms of trade shocks, trade shocks, relative price, elasticity of substitution
This paper examines the relationship between terms of trade shocks, private saving, and the current account position. The relationship between these variables is theoretically ambiguous: an adverse transitory terms...