Global Imbalances and Exchange Rate Adjustment


Rogoff, Kenneth. 2006. “Global Imbalances and Exchange Rate Adjustment.” Journal of Policy Modeling 28: 695-699.


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.


Last updated on 03/08/2013