Current account adjustment
Subtitle: some new theory and evidence
By: Jiandong Ju, Shang-Jin Wei
Contributors: Jin Wei, Shang jin; National Bureau of Economic Research
Series: NBER working paper series -- working paper 13388; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 13388.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, MA
Language: eng
Format: [electronic resource] :
Description: "This paper aims to provide a theory of current account adjustment that generalizes the textbook version of the intertemporal approach to current account and places domestic labor market institutions at the center stage.  In general, in response to a shock, an economy adjusts through a combination of a change in the composition of goods trade (i.e., intra-temporal trade channel) and a change in the current account (i.e., intertemporal trade channel).  The more rigid the labor market, the slower the speed of adjustment of the current account towards its long-run equilibrium.  Three pieces of evidence are provided that are consistent with the theory"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 9/20/2007.

Includes bibliographical references.

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