Regarding the current account imbalance issue, the IMF and the G20 have called for greater exchange rate flexibility. Does a flexible exchange rate facilitate current account adjustment? Kim and Pyun (2016) investigate whether a flexible exchange rate regime closes a current account deficit or surplus. It finds that a flexible exchange rate regime contributes to closing the current account imbalance for emerging market economies with current account deficit. It is important that the real exchange rate actually moves in a balanced way to adjust the current account surplus or deficit, rather than simply adopt a flexible exchange rate regime and managing medium or long-term determinants (e.g. fiscal balance, net foreign asset, dependency ratio, etc.) is more important for closing the imbalance.