The IMF's 2019 External Sector Report: Exchange Rates and External Adjustment

Gustavo Adler of the International Monetary Fund (IMF) will present “Exchange Rates and External Adjustment,” the analytical chapter of the Fund’s 2019 External Sector Report, on September 11, 2019, at the Peterson Institute for International Economics (PIIE). PIIE Senior Fellows José De Gregorio and Joseph E. Gagnon discussed their insights on the report, which was produced under the guidance of Gita Gopinath.

After narrowing sharply in the aftermath of the global financial crisis, overall current account surpluses and deficits reached 3 percent of world GDP in 2018, declining marginally while rotating toward advanced economies in recent years. The IMF’s multilateral approach suggests that about 35 to 45 percent of overall current account surpluses and deficits were deemed excessive in 2018.

Gustavo Adler is a deputy division chief at the IMF's Research Department. He joined the IMF in 2004 and has worked in multiple areas, including surveillance and program cases (Chile, Romania, Uruguay, Turkey, Indonesia) and development of IMF credit facilities. Recently, at the Research Department, his work has focused on foreign exchange intervention, capital flows, and external adjustment. He currently co-leads the production of the External Sector Report on global imbalances.

José De Gregorio, nonresident senior fellow at the Institute since March 2014, is dean of the School of Economics and Business at the University of Chile. He was governor of the Central Bank of Chile from 2007 until 2011. Before that he was vice-governor from 2003 and member of the bank's board from 2001. During 2000 and 2001, he was minister of the combined portfolios of economy, mining, and energy.

Joseph E. Gagnon, senior fellow since September 2009, was visiting associate director, Division of Monetary Affairs (2008–09) at the US Federal Reserve Board. Previously he served at the US Federal Reserve Board as associate director, Division of International Finance (1999–2008), and senior economist (1987–1990 and 1991–97). He has also served at the US Treasury Department (1994–95 and 1997–1999) and has taught at the Haas School of Business, University of California, Berkeley (1990–91).