Consumption-Based Interest Rate and the Present-Value Model of the Current Account—Evidence from Nigeria
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Summary:
This paper presents a model of current account determination, based upon the permanent-income hypothesis. A present-value relationship among the current account, changes in net output, the exchange rate and the terms of trade is derived and the implications of such a relationship are tested using data for Nigeria during 1960-97. This paper presents a model of current account determination, based upon the permanent-income hypothesis. A present-value relationship among the current account, changes in net output, the exchange rate and the terms of trade is derived and the implications of such a relationship are tested using data for Nigeria during 1960-97.
Series:
Working Paper No. 2001/093
Subject:
Balance of payments Consumption Current account Current account balance Financial services International trade National accounts Real interest rates Terms of trade
Frequency:
Annually
English
Publication Date:
August 1, 2001
ISBN/ISSN:
9781451851656/1018-5941
Stock No:
WPIEA0932001
Pages:
29
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