01862cas a2200253 a 4500 AALejournalIMF007456 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451858228 1018-5941 BD-DhAAL BD-DhAAL Milesi-Ferretti, Gian. Sharp Reductions in Current Account Deficits : An Empirical Analysis / Gian Milesi-Ferretti, Assaf Razin. Washington, D.C. : International Monetary Fund, 1997. 1 online resource (17 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 paper studies determinants and consequences of sharp reductions in current account imbalances (reversals) in low- and middle-income countries. It poses two questions: what triggers reversals, and what factors explain how costly reversals are? It finds that both domestic variables, such as the current account balance, openness to trade, and the level of reserves, and external variables, such as terms of trade shocks, U.S. real interest rates, and growth in industrial countries, seem to play important roles in explaining reversals in current account imbalances. It also finds some evidence that countries with a less appreciated real exchange rate, higher investment, and more openness before the reversal tend to grow faster after a reversal occurs. Mode of access: Internet Razin, Assaf. IMF Working Papers; Working Paper ; No. 1997/168 Full text available on IMF http://elibrary.imf.org/view/journals/001/1997/168/001.1997.issue-168-en.xml IMF e-Library