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International Macroeconomics

International Macroeconomics Schmitt-Groh e1 Uribe2 Woodford3. Last updated: May 4, 2016. 1. Columbia University. E-mail: 2. Columbia University. E-mail: 3. Columbia University. E-mail: ii Contents 1 Global Imbalances 1. Balance-of-Payments Accounting .. 1. The Current Account .. 7. Trade Balances and Current-Account Balances Across Countries 10. Imbalances in Merchandise Trade .. 14. The Current Account and the Net International Investment Position 15. Valuation Changes and the Net International Investment Position 18. The Negative NIIP And Positive NII Paradox: Dark Matter? 26. Dark Matter .. 27. Return Differentials .. 29. Who Lends and Who Borrows Around the World? .. 31. Exercises .. 34. 2 Current Account Sustainability 41. Can a Country Run a Perpetual Trade Balance Deficit? .. 41. Can a Country Run a Perpetual Current Account Deficit? . 45. Savings, Investment, and the Current Account .. 47. iii iv CONTENTS. Current Account Deficits As Declines in the Net International Investment Positi Current Account Deficits As Reflections of Trade Deficits 48.

8.3.2 PPP Exchange Rates for Baskets of Goods . . . . . . 310 8.3.3 PPP Exchange Rates and Standard of Living Comparisons311 8.3.4 Rich Countries are …

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