01736cas a2200265 a 4500 AALejournalIMF006179 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451874211 1018-5941 BD-DhAAL BD-DhAAL Lee, Jaewoo. Accounting for Global Dispersion of Current Accounts / Jaewoo Lee, Yongsung Chang, Sun-Bin Kim. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (33 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 We undertake a quantitative analysis of the dispersion of current accounts in an open economy version of incomplete insurance model, incorporating important market frictions in trade and financial flows. Calibrated with conventional parameter values, the stochastic stationary equilibrium of the model with limited borrowing can account for about two-thirds of the global dispersion of current accounts. The easing of financial frictions can explain nearly all changes in the current account dispersion in the past four decades whereas the easing of trade frictions has almost no impact on the current account dispersion. Mode of access: Internet Chang, Yongsung. Kim, Sun-Bin. IMF Working Papers; Working Paper ; No. 2009/276 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/276/001.2009.issue-276-en.xml IMF e-Library