Global Imbalances and Exchange Rate Adjustment
Publication information:
Rogoff, Kenneth. 2006. “Global Imbalances and Exchange Rate Adjustment”. Journal of Policy Modeling 28: 695-99.
Abstract
An eventual adjustment of the outsized US current account deficit is likely to have significant impact on global exchange rates unless it occurs only over a very long period. Policy responses aimed at reducing the risk of a recession are warranted, but they will not necessarily avoid the exchange rate adjustment.