Publication:
When is a Current Account Deficit Bad?

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dc.contributor.authorDevadas, Sharmila
dc.contributor.authorLoayza, Norman
dc.date.accessioned2018-10-04T18:28:16Z
dc.date.available2018-10-04T18:28:16Z
dc.date.issued2018-10
dc.description.abstractA current account deficit is sustainable when its underlying drivers support a smooth correction in the future. It is unsustainable when symptomatic of macroeconomic imbalances that would eventually trigger disruptive adjustments. Although a current account deficit in itself is neither good nor bad, it is likely to be unsustainable and lead to harmful consequences when it is persistently large, fuels consumption rather than investment, occurs alongside excessive domestic credit growth, follows an overvalued exchange rate, or accompanies unrestrained fiscal deficits. Even though a current account deficit is often paralleled by deteriorating net foreign assets, it may not be as informative about immediate-term financial vulnerabilities as the size, maturity, and currency composition of gross financial stocks.en
dc.identifierhttp://documents.worldbank.org/curated/en/507731538487989157/When-is-a-Current-Account-Deficit-Bad
dc.identifier.doi10.1596/30506
dc.identifier.urihttps://hdl.handle.net/10986/30506
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesResearch and Policy Briefs;No. 17
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectCURRENT ACCOUNT
dc.subjectTRADE
dc.subjectIMPORTS
dc.subjectGLOBAL VALUE CHAINS
dc.subjectGLOBALIZATION
dc.subjectMACROECONOMIC POLICY
dc.subjectCURRENCY
dc.subjectIMBALANCE
dc.titleWhen is a Current Account Deficit Bad?en
dc.typeBriefen
dc.typeFichefr
dc.typeResumenes
dspace.entity.typePublication
okr.crossref.titleWhen is a Current Account Deficit Bad?
okr.date.disclosure2018-10-02
okr.doctypePublications & Research
okr.doctypePublications & Research::Brief
okr.docurlhttp://documents.worldbank.org/curated/en/507731538487989157/When-is-a-Current-Account-Deficit-Bad
okr.guid507731538487989157
okr.identifier.doi10.1596/30506
okr.identifier.externaldocumentum090224b0863339b6_1_0
okr.identifier.internaldocumentum30464638
okr.identifier.report130415
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/507731538487989157/pdf/130415-BRI-PUBLIC-ADD-SERIES-When-is-a-current-account-deficit-bad.pdfen
okr.topicFinance and Financial Sector Development::Currencies and Exchange Rates
okr.topicInternational Economics and Trade::Export Competitiveness
okr.topicInternational Economics and Trade::International Trade and Trade Rules
okr.topicMacroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.topicMacroeconomics and Economic Growth::Macroeconomic Management
okr.unitDECRG: Macroeconomics & Growth (DECMG)
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