De Lima, Gabrielle and Moura, Guilherme and Meurer, Roberto and Da Silva, Sergio (2007): US Current Account Deficit and Exchange Rate Tax.
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We examine the relationship between the US current account deficit, the international value of the dollar, and the dollar reserves of foreign central banks. We find that the international value of the dollar impacts the US current account and also that dollar depreciations are accompanied by reductions in the inflow of foreign reserves. The inflow reductions are indicative that the US levies an exchange rate tax on foreigners because the foreign stock of reserves loses value.
|Item Type:||MPRA Paper|
|Institution:||Federal University of Santa Catarina|
|Original Title:||US Current Account Deficit and Exchange Rate Tax|
|Keywords:||US current account; exchange rate tax|
|Subjects:||F - International Economics > F3 - International Finance > F32 - Current Account Adjustment; Short-Term Capital Movements
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F42 - International Policy Coordination and Transmission
|Depositing User:||Sergio Da Silva|
|Date Deposited:||09. Jul 2007|
|Last Modified:||13. Feb 2013 03:13|
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