Current account imbalances in the Southern Euro Area /

Current account imbalances in the Southern Euro Area /

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Bibliographic Details
Author / Creator:Jaumotte, Florence, author.
Imprint:[Washington, D.C.] : International Monetary Fund, ©2010.
Description:1 online resource (49 pages) : color illustrations
Language:English
Series:IMF working paper ; WP/10/139
IMF working paper ; WP/10/139.
Subject:
Economic and Monetary Union.
Economic and Monetary Union.
Balance of payments -- Europe, Southern -- Econometric models.
Saving and investment -- Europe, Southern -- Econometric models.
Budget deficits -- Europe, Southern -- Econometric models.
Balance of payments -- Econometric models.
Budget deficits -- Econometric models.
Saving and investment -- Econometric models.
Southern Europe.
Format: E-Resource Book
URL for this record:http://pi.lib.uchicago.edu/1001/cat/bib/12498624
Hidden Bibliographic Details
Other authors / contributors:Sodsriwiboon, Piyaporn, author.
ISBN:9781455232390
1455232394
1282846132
9781282846135
1462305296
9781462305292
9786612846137
6612846135
1455201227
9781455201228
Notes:Includes bibliographical references (pages 22-23).
Print version record.
Summary:The paper examines the causes, consequences, and potential cures of the large current account deficits in the southern euro area (SEA). These were mostly driven by a decline in private saving rates. But it was the European Monetary Union and the euro, which enabled these countries to maintain investment rates, and thus run larger current account deficits, by improving their access to the international pool of saving. The paper finds that the deficits in SEA in 2008 were larger than can be explained by fundamentals, though the situation varies substantially across countries. It also finds that although the global financial crisis has started to force some unwinding, the current account deficits are expected to remain high in the medium run, though again with substantial variation across countries. The paper argues these large external deficits pose risks to the economy and therefore matter, even in a currency union, and discusses some policy options to reduce them.
Other form:Print version: Jaumotte, Florence. Current account imbalances in the southern euro area. [Washington, D.C.] : International Monetary Fund, ©2010
Table of Contents:
  • Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. What Explains the Rise in Current Account Deficits in Southern Euro Area Countries?; 1. Euro Area: Current Account Balance; 2. Southern Euro Area Countries: Current Account Balances 1970-2008; 3 Southern Euro Area: Savings and Investment; 4. Southern Euro Area: Private and Public Saving; 5. Southern Euro Area: Private and Public Investment; 6. Southern Euro Area: Financing of Current Account Balances; 7. Euro Area: Components of Current Account Balances; 1. Contributions to Current Account Deficits of SEA in 1994 and 1998.
  • 8. Net International Investment Position9. Euro Area: EMU and Current Accounts; 2. Stages to the Euro Adoption; 10. Southern Euro Area: EMU and Financial Liberalization; 11. Macroeconomic Policy Developments; 12. Euro Area: EMU and Interest Rates; 3. Determinants of the Current Accounts and Saving and Investment Rates; 13. Euro Area: Contributions to Changes in Current Accounts, Savings and Investments Rates, 2005-2008 versus 1989-1992; 14. Old Age Dependency Ratio.
  • 15. Southern Euro Area: Contributions to Difference in Current Accounts, Savings Rates and Investment Rates from Northern Euro Area, 2005-2008III. Do the Current Account Deficits Exceed Norms?; 16. Real Effective Exchange Rate; 4. Real Exchange Rate Developments; 17. Euro Area: EMU, Economic Growth, and Output Gaps; 18. Current Account Norms; 5. Current Account Norms; 6. Contributions of Current Account Norms; 19. The Unwinding of Imbalances from the Global Crisis; IV. Policy Options in a Currency Union; 7. The Improvement in Current Accounts from Policy Changes; V. Conclusions; VII. Appendix.
  • 8. Determinants of the Current Account Balance9. Robustness Tests of Current Account Regression; 10. Impact of Structural Policies on the Current Account; VI. References; Footnotes.

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