Terms of Trade Shocks and the Non-Monotonic Adjustment of the Current Account

This paper investigates both the dynamic and steady-state effects of anticipated permanent and temporary terms of trade shocks within a two-good small open economy with habit formation and capital adjustment costs. A permanent terms of trade worsening induces a deficit-surplus current account sequen...

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Bibliographic details
Main Author: Cardi, Olivier
Format: Journal Article
Language: English
Place of publication: ENSAE 2011
published in: Annales d'Economie et de Statistique no. 103; pp. 195 - 222
Data of publication: 2011
Series: Annales d'Economie et de Statistique
Online Access: available in Bonn?
Database: RePEc
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