Discussion paper

DP1509 Current Account Sustainability: Selected East Asian and Latin American Experiences

A number of developing countries have run large and persistent current account deficits in both the late-1970s/early-1980s and in the early-1990s, raising the issue of whether these persistent imbalances are sustainable. This paper puts forward a notion of current account sustainability and compares the experience of three Latin American countries ? Chile, Colombia and Mexico ? and three East Asian countries ? Korea, Malaysia and Thailand. It identifies a number of potential sustainability indicators and discusses their usefulness in predicting external crises.

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Citation

Razin, A and G Milesi-Ferretti (1996), ‘DP1509 Current Account Sustainability: Selected East Asian and Latin American Experiences‘, CEPR Discussion Paper No. 1509. CEPR Press, Paris & London. https://cepr.org/publications/dp1509