
Current Account and Real Exchange Rate Dynamics in the G-7 Countries »
Journal Issue
Volume/Issue: 2002/130
Series: IMF Working Papers
Author(s): Menzie Chinn , and Jaewoo Lee
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 August 2002
DOI: http://dx.doi.org/10.5089/9781451855203.001
ISBN: 9781451855203
Keywords: real exchange rate, intertemporal models, permanent and temporary shocks, exchange rate, current account balance, exchange rates, Open Economy Macroeconomics,
The canonical predictions of intertemporal open-economy macro models are tested by a structural VAR analysis of Group of Seven countries. The analysis is distinguished from the previous literature in that it adopts...