Research Discussion Paper – RDP 9001 Is Pitchford Right? Current Account Adjustment, Exchange Rate Dynamics and Macroeconomic Policy

Contents

• Introduction
• The Market-Clearing Model
• The Sticky Real Exchange Rate Model
• Welfare and Policy
• Conclusions
• References

I am grateful to Justin Myatt for excellent research assistance, and for helpful comments from Malcolm Edey, David Gruen and Glenn Stevens. Any errors are mine alone. The views expressed herein are those of the author and do not necessarily reflect the views of the Reserve Bank of Australia.