G7 Current Account Imbalances
Sustainability and Adjustment
- Contents

Introduction
Richard H. Clarida
I. ORIGINS OF CURRENT ACCOUNT IMBALANCES
1. From World Banker to World Venture Capitalist: U.S. External Adjustment and the Exorbitant Privilege
Pierre-Olivier Gourinchas and Hélène Rey
Comment: José De Gregorio
2. A Global Perspective on External Positions
Philip R. Lane and Gian Maria Milesi-Ferretti
Comment: Richard Portes
3. Direct Investment, Rising Real Wages, and the Absorption of Excess Labor in the Periphery
Michael P. Dooley, David Folkerts-Landau, and Peter Garber
Comment: Shang-Jin Wei
II. EMPIRICAL STUDIES OF G7 CURRENT ACCOUNT AND EXCHANGE RATE ADJUSTMENT
4. Current Account Deficits in Industrial Countries: The Bigger They Are, the Harder They Fall?
Caroline Freund and Frank Warnock
Comment: Assaf Razin
5. Are There Thresholds of Current Account Adjustment in the G7?
Richard H. Clarida, manuela Goretti, and Mark P. Taylor
Comment: Robert E. Cumby
6. Current Account Reversals: Always a Problem?
Muge Adalet and Barry Eichengreen
Comment: Fredric S. Mishkin
7. Understanding the U.S. Trade Deficit: A Disaggregated Persepective
Catherine L. Mann and Katherina Plück
Comment: Edwin M. Truman
8. Will the Euro Eventually Surpass the Dollar as Leading International Reserve Currency?
Menzie Chinn and Jeffrey A. Frankel
Comment: Edwin M. Truman
III. THEORETICAL PERSPECTIVES ON CURRENT ACCOUNT SUSTAINABILITY AND ADJUSTMENT
9. The Unsustainable U.S. Current Account Position Revisited
Maurice Obstfeld and Kenneth Rogoff
Comment: Kristin J. Forbes
10. Smooth Landing or Crash? Model-Based Scenarios of Global Current Account Rebalancing
Hamid Faruqee, Douglas Laxton, Dirk Muir, and Paolo A. Pesenti
Comment: Lars E. O. Svensson
11. The Dot-Com Bubble, the Bush Deficits, and the U.S. Current Account
Aart Kraay and Jaume Ventura
Comment: Joseph E. Gagnon
Contributors
Author Index
Subject Index
Economics and Business: Business--Industry and Labor | Economics--Government Finance | Economics--International and Comparative | Economics--Money and Banking
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