01756cas a2200253 a 4500 AALejournalIMF002033 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451855203 1018-5941 BD-DhAAL BD-DhAAL Chinn, Menzie. Current Account and Real Exchange Rate Dynamics in the G-7 Countries / Menzie Chinn, Jaewoo Lee. Washington, D.C. : International Monetary Fund, 2002. 1 online resource (22 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 canonical predictions of intertemporal open-economy macro models are tested by a structural VAR analysis of Group of Seven countries. The analysis is distinguished from the previous literature in that it adopts minimal assumptions for identification. Consistent with a large set of theoretical models, permanent shocks have large long-term effects on the real exchange rate but relatively small effects on the current account; temporary shocks have large effects on the current account and exchange rate in the short run, but not on either variable in the long run. The signs of some impulse responses point toward models that differentiate tradables and nontradables. Mode of access: Internet Lee, Jaewoo. IMF Working Papers; Working Paper ; No. 2002/130 Full text available on IMF http://elibrary.imf.org/view/journals/001/2002/130/001.2002.issue-130-en.xml IMF e-Library