The Role of Stock Markets in Current Account Dynamics: Evidence from the United States

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Author/Editor: Benoît Mercereau
Release Date: © May, 2003
ISBN : 978-1-45185-312-4
Stock #: WPIEA1082003
English
Stock Status: Available

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Description

This paper tests a model of the role of stock markets in current account dynamics, developed in a companion paper. With U.S. data, the model performs better than the same model without stock markets. An insight given by the model is that the current account might help predict future stock market performance. This property receives some preliminary empirical confirmation. The results also suggest that stock markets matter to the current account dynamics.

Taxonomy

Balance of payments , Current account




More publications in this series: Working Papers


More publications by: Benoît Mercereau