Skip to content
Research Article Open access CC BY 3.0

Current Account and Exchange Rate Dynamics in Presence of Risk and Economic Shocks

Satyajit Ghosh, Ioannis N. Kallianiotis

Journal of Economics, Management and Trade · pp. 101–114 · Published 12 Apr 2013

10.9734/BJEMT/2013/3232

Abstract

The paper is using a two period model of consumption and current account balance and tries to determine the dynamics of the exchange rates by taking into consideration the increases in oil prices, national debts, budget and trade deficits, the global uncertainty, and the enormous liquidity, due to the recent financial crisis and recession. Specifically, in this paper we have used the insights of an intertemporal model of consumption to analyze the recent behavior of the current account balance in the U.S. We have examined the roles of risk, price of gold, price of oil, TED spread, as well as interest rate, GDP and government spending. We have also analyzed the behavior of spot rate.

Exchange rate determination current account oil prices national debt uncertainty multiple regression cointegration test

Cited by 0

No indexed citations yet.

Article metrics

Real usage data collected on this platform.

0

Page views

0

PDF downloads

0

Outbound clicks

0

Citations

Views by country

Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".

No views recorded yet.

Traffic sources

Referring site, by host.

No traffic recorded yet.

Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.