; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "Macroeconomic Volatility and External Imbalances"; ; "batchuser@example.com"; "Perri, Fabrizio", "Fogli, Alessandra"; "Federal Reserve Bank of Minneapolis"; "Global imbalances", "Uncertainty", "Business cycles", "Current account", "Precautionary saving"; "F41 - Open Economy Macroeconomics", "F34 - International Lending and Debt Problems", "F32 - Current Account Adjustment; Short-term Capital Movements"; "Does macroeconomic volatility/uncertainty affect accumulation of net foreign assets? In OECD economies over the period 1970-2012, changes in country specific aggregate volatility are, after controlling for a wide array of factors, significantly positively associated with net foreign asset position. An increase in volatility (measured as the standard deviation of GDP growth) of 0.5% over period of 10 years is associated with an increase in the net foreign assets of around 8% of GDP. A standard open economy model with time varying aggregate uncertainty can quantitatively account for this relationship. The key mechanism is precautionary motive: more uncertainty induces residents to save more, and higher savings are in part channeled into foreign assets. We conclude that both data and theory suggest uncertainty/volatility is an important determinant of the medium/long run evolution of external imbalances in developed countries."^^; "2015-05-11"; "2019-05-17T14:14:01.013042259+00:00"^^; "https://doi.org/10.21034/sr.512"; ; "https://creativecommons.org/licenses/by-nc/4.0/"; "Thu Nov 7 20:58:17 2019"; "https://creativecommons.org/licenses/by-nc/4.0/"; "Research Paper"; "601", "245"; "Staff report (Federal Reserve Bank of Minneapolis. Research Department)"; "512"; "Business cycles", "Global imbalances", "Uncertainty", "Precautionary saving", "Current account"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Research Department"; "Published in: _Journal of Monetary Economics_ (Vol. 69, January 2015, pp. 1-15) https://doi.org/10.1016/j.jmoneco.2014.12.003."^^; ; "Publication" . ; .