Foundations of International Macroeconomics¶
Obstfeld, M., & Rogoff, K. (1996). Foundations of International Macroeconomics. MIT Press.
Cited by¶
1 citation across 1 artifact.
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Primes¶
- Source-Sink Dynamics
- In capital and financial flows, the national vocabulary of current-account surplus and deficit is the source-sink balance written at the level of countries.
This sourceDevelops current-account dynamics as intertemporal trade (CA = S − I): surplus countries finance deficit countries, and external debt must be repaid from the present value of future trade balances — a deficit is sustainable only while the financing flow continues, the source-sink reading of current-account balances.
- In capital and financial flows, the national vocabulary of current-account surplus and deficit is the source-sink balance written at the level of countries.
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