01766cas a2200253 a 4500 AALejournalIMF001920 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451959048 1018-5941 BD-DhAAL BD-DhAAL Ostry, Jonathan. Macroeconomic Uncertainty, Precautionary Savings and the Current Account / Jonathan Ostry, Atish Ghosh. Washington, D.C. : International Monetary Fund, 1992. 1 online resource (44 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The relationship between current account developments and changes in the macroeconomic environment remains a key issue in open economy macroeconomics. This paper extends the standard intertemporal optimizing model of the current account to incorporate the effects of macroeconomic uncertainty on private savings behavior. It is shown that the greater the uncertainty in national cash flow, defined as output less investment less government expenditure, the greater is the precautionary demand for savings and, other things equal, the larger is the current account surplus. Empirical support for the model is found using quarterly data from four large industrial countries. Mode of access: Internet Ghosh, Atish. IMF Working Papers; Working Paper ; No. 1992/072 Full text available on IMF http://elibrary.imf.org/view/journals/001/1992/072/001.1992.issue-072-en.xml IMF e-Library