01719cas a2200241 a 4500 AALejournalIMF013950 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484321898 1018-5941 BD-DhAAL BD-DhAAL Klemm, Alexander. Growth Following Investment and Consumption-Driven Current Account Crises / Alexander Klemm. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (23 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 Current account deficits imply increasing liabilities to the rest of the world. External sustainability then depends on whether these can be met in the future without defaulting, id est, normally through trade account surpluses. To run such surpluses without a fall in consumption, capital inflows should be used to increase future output. This paper tentatively finds that current account deficits reversals that follow investment booms are marked by better growth performance than those following consumption booms. It also shows that many recent large current account deficits have been predominantly the result of consumption or non-productive investment booms. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2013/217 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/217/001.2013.issue-217-en.xml IMF e-Library