This paper aims to describe the evolution of the external risk in the United Kingdom between 1961 and 2008. We first present a theoretical description of the risk indicator. Then, we calculate this measure for the British economy in the period of study. In general, the results reveal a very small increase of external risk. Finally, the relationship between the two dimensions of external risk: trade openness and external volatility is analysed.trade openness, terms of trade volatility, external risk, United Kingdom

Estela SÃ¡enz

Marcela Sabaté

MarÃ­a Dolores Gadea

Research Papers in Economics

English

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Measuring the external risk in the United Kingdom