Investigators at Portland State University Report Findings in Investment (Current Account Dynamics and Saving-investment Nexus In a Changing and Uncertain World): Investment

2025 FEB 03 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Investigators discuss new findings in Investment. According to news reporting originating from Portland, Oregon, by NewsRx correspondents, research stated, “We re-examine the determinants of current account balances (CAB) and the saving-investment nexus with focus on emerging market and developing economies (EMDEs). We are in a new age in terms of facing not just economic challenges but also other non-economic challenges such as global climate changes, increasing natural disasters, and wars.”

Financial supporters for this research include University of Wisconsin, Portland State University.

Our news editors obtained a quote from the research from Portland State University, “We face the need to reexamine the determinants of CAB along with national saving and investment. We first take an event study approach, examining how these variables have evolved historically in the wake of wars, natural disasters, and pandemics. The second is a cross-country panel investigation of CAB, national saving, and of investment. In the presence of global financial instability, EMDEs tend to experience an improvement in CAB due to a fall in investment. A rise in oil prices increases both national saving and investment, but the change in investment is greater than the change in national saving, which worsens CAB. Contractionary monetary policy by the U.S. Federal Reserve Board tends to lower both national saving and investment, but the impact on CAB is not statistically different from zero. The more frequently a country experiences wars, on average, its CAB tends to improve. When a climatological or geographical disaster happens, all of its CAB, national saving, and investment tend to improve.”

According to the news editors, the research concluded: “A rise in the level of U.S. monetary policy uncertainty leads to an improvement in CAB, mainly due to a fall in investment.”

This research has been peer-reviewed.

For more information on this research see: Current Account Dynamics and Saving-investment Nexus In a Changing and Uncertain World. Journal of International Money and Finance, 2025;151. Journal of International Money and Finance can be contacted at: Elsevier Sci Ltd, 125 London Wall, London, England. (Elsevier - www.elsevier.com; Journal of International Money and Finance - http://www.journals.elsevier.com/journal-of-international-money-and-finance/)

The news editors report that additional information may be obtained by contacting Hiro Ito, Portland State University, Portland, OR 97201, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.jimonfin.2024.103238. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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