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Trend shocks and the countercyclical U S current account

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Figure

Figure 1: U.S. current account balance as a share of GDP, and U.S. real GDP growth rate
Table 1: Business cycle correlations between log U.S. real GDP (y) and the current-account-to-GDP ratio (ca)
Table 2: Baseline calibration. Values for ρig and ρiz are for specifications in which these parametersare not estimated.
Figure 2: Impulse responses to a 1% transitory (“z”) shock and a 0.1% trend (“g”) shock
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