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The Relation Between the Current Account and the Exchange Rate: a Survey of the Recent Literature

In: Exchange Rates in Multicountry Econometric Models

Author

Listed:
  • Richard Blackhurst
  • Marie-Christine Adam

Abstract

The subject of this paper is the recent literature on the relationship between changes in a country’s exchange rate and changes in its current account balance. Given the nature of the workshop and my belief in the advantages of specialization, I have limited the survey to the literature dealing with theoretical aspects and direct empirical tests of the relationship. Thus I have not covered the literature on macroeconomic modelling, and there are only brief references to recent work in such areas as the estimation of import/export demand elasticities. My approach has been to ask ‘What do “consumers” of research in this area find when they go to the literature?’.

Suggested Citation

  • Richard Blackhurst & Marie-Christine Adam, 1983. "The Relation Between the Current Account and the Exchange Rate: a Survey of the Recent Literature," Palgrave Macmillan Books, in: Paul Grauwe & Theo Peeters (ed.), Exchange Rates in Multicountry Econometric Models, chapter 3, pages 58-102, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-17286-3_3
    DOI: 10.1007/978-1-349-17286-3_3
    as

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