01776cas a2200265 a 4500 AALejournalIMF006178 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451874204 1018-5941 BD-DhAAL BD-DhAAL Lee, Jaewoo. The Valuation Channel of External Adjustment / Jaewoo Lee, Fabio Ghironi, Alessandro Rebucci. Washington, D.C. : International Monetary Fund, 2009. 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 International financial integration has greatly increased the scope for changes in a country's net foreign asset position through the valuation channel, namely capital gains and losses on external assets and liabilities. We examine this valuation channel in a dynamic equilibrium portfolio model with international trade in equity. By separating asset prices and quantities, we can characterize the first-order dynamics of valuation effects and the current account in macroeconomic dynamics. Specifically, we disentangle the roles of excess returns, capital gains, and portfolio adjustment for consumption risk sharing when financial markets are incomplete. Mode of access: Internet Ghironi, Fabio. Rebucci, Alessandro. IMF Working Papers; Working Paper ; No. 2009/275 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/275/001.2009.issue-275-en.xml IMF e-Library