... mark our paper from the aforementioned ones. First, we focus on the demand of safe assets as the crucial driver of current account adjustment by separating the risky assets' flows (FDI and portfolio equities) from the safe assets' flows (bonds). With the FDI and portfolio equities investment, our model...

...Moumita Basu; Ranjanendra Narayan Nag Purpose This is a theoretical paper in the field of international macroeconomics. The purpose of this paper is to focus on a dynamic interaction between current account imbalance and unemployment in response to some policy-induced shocks for a small open...

...Ahmad Zubaidi Baharumshah; Hamizun Bin Ismail Purpose The purpose of this paper is to determine whether current account imbalances – surpluses or deficits – are “excessive” and hence constitute a valid concern. The second objective is to assess the degree of capital mobility by comparing...