Credit Cycles, Fiscal Policy, and Global Imbalances /

We study the role that changes in credit and fiscal positions play in explaining current account fluctuations. Empirically, the current account declines when credit increases, and when the fiscal balance declines. We use a two-country model with financial frictions and fiscal policy to study these f...

Πλήρης περιγραφή

Λεπτομέρειες βιβλιογραφικής εγγραφής
Κύριος συγγραφέας: Jones, Callum
Άλλοι συγγραφείς: Rabanal, Pau
Μορφή: Επιστημονικό περιοδικό
Γλώσσα:English
Έκδοση: Washington, D.C. : International Monetary Fund, 2021.
Σειρά:IMF Working Papers; Working Paper ; No. 2021/043
Θέματα:
Διαθέσιμο Online:Full text available on IMF
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245 1 0 |a Credit Cycles, Fiscal Policy, and Global Imbalances /  |c Callum Jones, Pau Rabanal. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2021. 
300 |a 1 online resource (53 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a We study the role that changes in credit and fiscal positions play in explaining current account fluctuations. Empirically, the current account declines when credit increases, and when the fiscal balance declines. We use a two-country model with financial frictions and fiscal policy to study these facts. We estimate the model using annual data for the U.S. and 'a rest of the world' aggregate that includes main advanced economies. We find that about 30 percent of U.S. current account balance fluctuations are due to domestic credit shocks, while fiscal shocks explain about 14 percent. We evaluate simple macroprudential policy rules and show that they help reduce global imbalances. By taming the financial cycle, macroprudential rules that react to domestic credit conditions or to domestic house prices would have led to a smaller and less volatile U.S. current account deficit. We also show that a countercylical fiscal policy rule that stabilizes output growth reduces the level and volatility of the U.S. current account deficit. 
538 |a Mode of access: Internet 
650 7 |a Credit Cycles  |2 imf 
650 7 |a Current Account Balances  |2 imf 
650 7 |a Fiscal Policy  |2 imf 
650 7 |a Macroprudential Policies  |2 imf 
650 7 |a Model Evaluation and Selection  |2 imf 
700 1 |a Rabanal, Pau. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2021/043 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2021/043/001.2021.issue-043-en.xml  |z IMF e-Library