TY  - JOUR
AU  - Eichengreen, Barry
AU  - Adalet, Muge
TI  - Current Account Reversals: Always a Problem?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 11634
PY  - 2005
Y2  - September 2005
DO  - 10.3386/w11634
UR  - http://www.nber.org/papers/w11634
L1  - http://www.nber.org/papers/w11634.pdf
N1  - Author contact info:
Barry Eichengreen
Department of Economics
University of California, Berkeley
549 Evans Hall 3880
Berkeley, CA 94720-3880
Tel: 510/642-2772
Fax: 510/643-0926
E-Mail: eichengr@econ.Berkeley.edu

Muge Adalet
School of Economics and Finance
Victoria University of Wellington
Wellington, New Zealand
E-Mail: muge.adalet@vuw.ac.nz
M1  - published as Muge Adalet, Barry Eichengreen. "Current Account Reversals: Always a Problem?," in Richard H. Clarida, editor, "G7 Current Account Imbalances: Sustainability and Adjustment" University of Chicago Press (2007)

AB  - Using panel data and case studies, we analyze the pre-1970 history of international capital flows and current account reversals. Considering a sample of emerging markets and advanced economies with per capita GDPs at least 60 per cent those of the lead country, we show that the incidence of reversals has been unusually great in recent years. The only prior period that matched the last three decades in terms of the frequency and magnitude of reversals was the 1920s and 1930s, decades notorious for the instability of capital flows. In contrast, reversals were both less common and smaller in the Bretton Woods and pre-World War I gold standard eras.
ER  -