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dc.titleTheoretical Background on External Sustainability Assessments
dc.contributor.authorCastillo, Marola A.
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageLatin America and the Caribbean
dc.date.available2016-09-13T00:00:00
dc.date.issue2016-09-12T00:00:00
dc.description.abstractThis paper explains in detail the external sustainability assessment approach given by the stock-flow relationship between the net external positions, non-income current account plus net capital transfers, and real exchange rate. This approach consists of determining the non-income current account over GDP that would stabilize a benchmark net foreign asset (NFA) position over the medium term, and a "gap" by comparing the NFA-stabilizing non-income current account over GDP with the nonincome current account expected to prevail over the medium term. Additionally, the paper addresses the role of the returns differential in explaining the channels through which the external sustainability adjustment may occur (i. e., trade and financial channels).
dc.format.extent62
dc.identifier.doihttp://dx.doi.org/10.18235/0009306
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Theoretical-Background-on-External-Sustainability-Assessments.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectNet Foreign Asset
dc.subjectSustainability Assessment
dc.subjectFinancial Liability
dc.subjectExport
dc.subjectGDP Growth
dc.subjectOil Price
dc.subjectForeign Exchange
dc.subject.jelcodeE01 - Measurement and Data on National Income and Product Accounts and Wealth • Environmental Accounts
dc.subject.jelcodeF31 - Foreign Exchange
dc.subject.jelcodeF32 - Current Account Adjustment • Short-Term Capital Movements
dc.subject.jelcodeF37 - International Finance Forecasting and Simulation: Models and Applications
dc.typeTechnical Notes
idb.identifier.pubnumberTechnical Notes
idb.operationBK-C1123
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