External imbalances in the Euro area /

External imbalances in the Euro area /

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Bibliographic Details
Author / Creator:	Chen, Ruo.
Imprint:	[Washington, D.C.] : International Monetary Fund, ©2012.
Description:	1 online resource (49 pages)
Language:	English
Series:	IMF working paper ; WP/12/236 IMF working paper ; WP/12/236.
Subject:	Balance of payments -- European Union countries -- Econometric models. Eurozone -- Econometric models. Balance of payments -- Econometric models. European Union countries.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12500854

Hidden Bibliographic Details
Other authors / contributors:	Milesi-Ferretti, Gian-Maria. Tressel, Thierry. International Monetary Fund. European Department. International Monetary Fund. Western Hemisphere Department.
ISBN:	9781475512120 1475512120
Notes:	Title from PDF title page (IMF Web site, viewed Oct. 2, 2012). "EUR and WHD." "September 2012." Includes bibliographical references.
Summary:	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.

Description
Summary:	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.
Item Description:	Title from PDF title page (IMF Web site, viewed Oct. 2, 2012). "EUR and WHD." "September 2012."
Physical Description:	1 online resource (49 pages)
Bibliography:	Includes bibliographical references.
ISBN:	9781475512120 1475512120