{"product_id":"current-account-sustainability-von-sandra-hlivnjak","title":"Current Account Sustainability","description":"\u003cp\u003eThis research investigates whether the persistent  current account deficit in BH is sustainable.  Initially current account (CA) sustainability is  investigated by using the concept of a stationary  condition and the mean reversion proposition. It is  argued that stationarity of the CA presents a  minimum requirement for CA sustainability assessment  based on less strict intertemporal solvency  conditions. It was found that four out of the five  Western Balkan countries investigated have a  stationary CA to GDP ratio and therefore met this  minimum requirement for sustainability. In order to  develop an empirical model to assess CA  sustainability in BH, next the Fundamental  Equilibrium Exchange Rate is estimated. The  conclusion drawn from this analysis was that BH's  high and persistent CA deficit was not caused by  exchange rate misalignment, thus there is no need to  adjust the peg. The main reason behind the BH CA  deficit is its trade deficit. In the absence of  previous analyses of trade deficit sustainability in  the WB the next question assessed was whether  forming an FTA is a helpful policy for BH utilising  an ex post empirical analysis.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783844384314\"\u003e\u003ch3\u003ethe case of Bosnia and Herzegovina\u003c\/h3\u003e\u003c\/div\u003e","brand":"Autorenwelt Shop","offers":[{"title":"Softcover - 9783844384314","offer_id":39471306211421,"sku":"9783844384314","price":79.0,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/70524268-8372-4d45-be10-7c28bb9431b4.jpg?v=1744441913","url":"https:\/\/shop.autorenwelt.de\/products\/current-account-sustainability-von-sandra-hlivnjak","provider":"Autorenwelt Shop","version":"1.0","type":"link"}