Intertemporal Price Speculation and the Optimal Current-Account Deficit: Reply and Clarification
| dc.creator | Obstfeld, Maurice | |
| dc.date | 2017-04-01T14:02:36Z | |
| dc.date.accessioned | 2026-07-09T10:22:13Z | |
| dc.description | In the model of Obstfeld (1983), a country hurt by a temporary shift in its terms of trade, whether the shift is infinitesimal or not, always runs a temporary current-account deficit. Temporary rises in relative export prices always cause surpluses in the model. This note derives these results within an analysis that clarifies how temporary terms-of-trade shocks affect the consumption-based real interest rate on external debt and, hence, the current account. | |
| dc.identifier | doi:10.22004/ag.econ.233425 | |
| dc.identifier | https://ageconsearch.umn.edu/record/233425/files/cal-cider-c096-063.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/233425 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/618026 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/233425 | |
| dc.title | Intertemporal Price Speculation and the Optimal Current-Account Deficit: Reply and Clarification | |
| dc.type | Text |