Format:
Online-Ressource (49 p)
Edition:
Online-Ausg.
ISBN:
1475524676
,
9781475524673
Series Statement:
IMF Working Papers Working Paper No. 12/236
Content:
The paper examines the extent to which current account imbalances of euro area countries are related to intra-euro area factors and to external trade shocks. We argue that the traditional explanations for the rising imbalances are correct, but are incomplete. We uncover a large impact of declines in export competitiveness and asymmetric trade developments vis-à-vis the rest of the world –in particular vis-à-vis China, Central and Eastern Europe, and oil exporters- on the external balance of euro area debtor countries. While current account imbalances of euro area deficit countries vis-à-vis the rest of the world increased, they were financed mostly by intra-euro area capital inflows (in particular by the purchase of government and financial institutions’ securities, and cross-border interbank lending) which permitted external imbalances to grow over time
Additional Edition:
Erscheint auch als Druck-Ausgabe Chen, Ruo External Imbalances in the Euro Area Washington, D.C. : International Monetary Fund, 2012 ISBN 9781475524673
Language:
English
DOI:
10.5089/9781475524673.001
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