Scenarios for the Sustainability of the Current Account

An alternative specification of the sustainability condition requires that the debt-to-GDP over the period 2007-2016 should not change from its initial value in 2006.
But then the required rate of RER depreciation in order to achieve sustainability in the current account will turn out to be larger.

An alternative specification of the sustainability condition requires that the debt-to-GDP over the period 2007-2016 should not change from its initial value in 2006.