ADDITIONAL MATERIALS

Books

The United States as a Debtor Nation by William R. Cline . The study examines whether the large and growing current account deficit is a problem, and if so, how the problem can be solved.

Papers

Modeling the U.S. Current Account as the Savings-Investment Balance by Juann Hung and Charles Bronowski. The paper derives and estimates a current account model from the perspective that the current account balance is the difference between national savings and investment.

Adjustment Policies and the Current Account Balance: Empirical evidence from Sudan by Alamedin A. Bannaga. The paper seeks to assess the impact of adjustment reforms on Sudan taking the current account balance as policy performance indicator. The paper shows that the government own reforms were more effective than those imposed by the IMF or the World Bank. It further illustrates that both policy and non-factors are responsible to the same degree in deriving current account deficit in the long run specifically inefficiency in exchange rate policy and structural and demographic factors.

The Unsustainable US Current Account Position Revisited by Maurice Obstfeld and Kenneth Rogoff. The paper shows that the when one takes into account the global equilibrium ramifications of an unwinding of the US current account deficit, currently running at more than 6% of GDP, the potential collapse of the dollar becomes as much as 30% or even higher.

Speeches

The US Current Account Deficit and the Euro Area by Edwin M. Truman. Speech prepared for "The ECB and Its Watchers VI" Conference Frankfurt, Germany July 2, 2004.