01775cas a2200253 a 4500 AALejournalIMF008520 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451859881 1018-5941 BD-DhAAL BD-DhAAL Hunt, Benjamin. The U.S. Dollar and the Trade Deficit : What Accounts for the Late 1990's? / Benjamin Hunt, Alessandro Rebucci. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (41 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 Based on a version of the IMF's new Global Economic Model (GEM), calibrated to analyze macroeconomic interdependence between the United States and the rest of the world, this paper asks to what extent an asymmetric productivity shock in the tradable sector of the economy may account for real exchange rate and trade balance developments in the United States in the second half of the 1990s. The paper concludes that the Balassa-Samuelson effect of such a productivity shock is only part of the story. A second shock, a broadly defined 'risk premium' shock, and some uncertainty about the persistence of both shocks are needed to match the data more satisfactorily. Mode of access: Internet Rebucci, Alessandro. IMF Working Papers; Working Paper ; No. 2003/194 Full text available on IMF http://elibrary.imf.org/view/journals/001/2003/194/001.2003.issue-194-en.xml IMF e-Library