Effective Exchange Rates, Current Accounts and Global Imbalances

Beckmann, Joscha; Czudaj, Robert

doi:10.1111/roie.12272

Cited by 10 publications

(1 citation statement)

References 62 publications

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“…2 A sizable amount of valuation effects thus acts as important cross-country wealth transfer mechanism. The noticeable effects of valuation changes are also introduced in Beckmann and Czudaj (2017), where they examined the relationship between current accounts and exchange rates and concluded that valuation effects play an important role for the current account responses to exchange rates movements. Gourinchas and Rey (2007) found that it accounts for 27% of the cyclical international adjustment of US.…”

Section: Introductionmentioning

confidence: 99%

Long‐term determinants of valuation effects

Kim

Min²

2022

Rev International Economics

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The progression of financial globalization increases the importance of valuation changes of foreign assets and liabilities, similar to that of current account in explaining the recent net foreign asset position of countries around the world. This study analyzes the long-term determinants of valuation effects by using panel regression with 10-year data span of 188 countries. The main findings are as follows. First, the size of foreign assets and relative portion of risky assets are positively associated with valuation effects, which suggests that general principles for long-term individual investors also hold for an entire country. Second, current account is negatively associated with valuation effects, which suggests that these two mechanisms stabilize each other in overall international adjustment process. Third, exchange rate changes are often positively associated with valuation effects, which at times depend on foreign asset and liability positions. Fourth, per capita GDP are negatively associated with valuation effects. Fifth, current account is mainly associated with valuation effects due to asset price changes, but exchange rate changes and foreign asset and liability positions are mainly associated with valuation effects due to exchange rate changes. The relative proportion of risky assets is associated with both types of valuation effects.

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Section: Introductionmentioning

confidence: 99%

Long‐term determinants of valuation effects

Kim

Min²

2022

Rev International Economics

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Unveiling the causal impact of US economic policy uncertainty on exchange market pressure of African economies

Olasehinde‐Williams

Olanipekun²

2020

Journal of Public Affairs

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One of the factors responsible for the growth of African economies is their interaction with advanced economies such as the United States. In this regard, this study investigated the causal linkages between the exchange market pressure (EMP) of African economies and the economic policy uncertainty (EPU) of the United States. A panel of nine African countries were studied from 1996 M01 to 2018 M12 using a bootstrap Granger causality test because of its robustness to cross-sectional dependence and heterogeneity. We found that US EPU Granger causes EMP in the panel of African countries. At country level, we found causal relations running from US EPU to EMP in Egypt,

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Net Foreign Asset Positions, Capital Flows and GDP Spillovers

Beckmann

Czudaj

2020

Open Econ Rev

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Effective Exchange Rates, Current Accounts and Global Imbalances

Cited by 10 publications

References 62 publications

Long‐term determinants of valuation effects

Long‐term determinants of valuation effects

Unveiling the causal impact of US economic policy uncertainty on exchange market pressure of African economies

Net Foreign Asset Positions, Capital Flows and GDP Spillovers

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