Suchergebnisse

The German current account balance has moved from surplus to deßcit in the course of unificalion. A theorelical model for the current account, encompassing the elaslicities, the monetary, and the absorptions approach, is set up and lested for Germany and the United States, using cointegration analysis. In addition, private savings are modelled by a life-cylce model nested in a model of overlapping generations. A counlry's private and government savings are idenlified as the major factors driving the current accounl. Private savings are explained by the specified model. The concepi of a primary deßcit as well as the concept of half- and full-debt-cycles are used to argue that the German current account deßcit can easily move from sustainability lo unsuslainability in the near future.

This paper reviews Lebanon's ability to manage financial pressures following severe shocks despite its large public debt overhang and significant external vulnerabilities. Based on interviews with market participants in Beirut and London, the paper concludes that Lebanon's ability to weather what appear to be ""perfect storms"" derives from three characteristics: a perceived implicit guarantee from donors; Lebanon's track record of having never defaulted on external debt or deposits; and the unique market structure for Lebanese debt which is dominated by local banks and ""dedicated"" investors