01529cas a2200241 a 4500 AALejournalIMF004719 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451865912 1018-5941 BD-DhAAL BD-DhAAL Kim, Jun. Fiscal Policy and the Exchange Rate-Current Account Nexus / Jun Kim. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (13 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 By using a simple intertemporal model of the current account, I show that the exchange rate elasticity of the trade balance would ceteris paribus be smaller for countries with higher government spending ratios (relative to GDP) and with more limited scope for private consumption smoothing. This finding may have important implications for the design of adjustment programs and for resolving current global imbalances. It could also help explain and reconcile mixed empirical findings on trade elasticities. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2007/027 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/027/001.2007.issue-027-en.xml IMF e-Library