Research Discussion Paper – RDP 2005-09 The US Current Account Deficit: A Re-Examination of the Role of Private Saving

Contents

• Introduction
• The Model
• Real Exchange Rate Model
• Model Simulations
• Conclusions
• References

This paper represents preliminary work on a study that is co-authored with John H Rogers, Board of Governors of the Federal Reserve, to be presented at the Carnegie-Rochester Conference Series on Public Policy, on the topic of International Trade and Globalization, 18–19 November 2005. Rogers has directly contributed most of the data work in this paper, and the overall discussion has evolved through our discussions. We have greatly benefited at this stage from many discussions with David Backus, Menzie Chinn, and the staff at the Reserve Bank of Australia. The views expressed in this paper do not necessarily represent those of the Board of Governors of the Federal Reserve or the Reserve Bank of Australia.