| Description |
1 online resource (49 pages) |
| Series |
IMF working paper ; WP/12/236 |
|
IMF working paper ; WP/12/236.
|
| Contents |
Cover; Abstract; Table of Contents; I. Introduction; II. Stylized facts on euro area imbalances and their interpretation; A. Stylized Facts; B. Traditional Explanations for the rise of euro area imbalances; Intra-euro Area Financial Integration and Expected Growth; "Over-Optimism" and Excessive Real Appreciation; III. Euro Area imbalances and the rest of the world: new stylized facts; A. Real exchange rate appreciation; B. Trade developments with non-euro area countries; C. Capital flows; IV. Econometric evidence of the asymmetric impact of trade shocks on export competitiveness |
|
A. HypothesisB. Econometric Analysis: asymmetric effects of trade shocks and of the nominal exchange rate on euro area countries; Export regressions; Import regressions -- displacement effect; Estimates of asymmetric impact of world trade shocks; V. The financing of euro area debtor countries; A. Financial integration and NFA positions; B. Sectoral and instrument composition of the NFA position; VI. Concluding remarks; References; Appendix |
| 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 |
| Notes |
Title from PDF title page (IMF Web site, viewed Oct. 2, 2012) |
| Bibliography |
Includes bibliographical references |
| Notes |
"EUR and WHD." |
|
"September 2012." |
| Subject |
Balance of payments -- European Union countries -- Econometric models
|
|
Eurozone -- Econometric models
|
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BUSINESS & ECONOMICS -- Foreign Exchange.
|
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Balance of payments -- Econometric models
|
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European Union countries
|
| Form |
Electronic book
|
| Author |
Milesi-Ferretti, Gian-Maria
|
|
Tressel, Thierry.
|
|
International Monetary Fund. European Department.
|
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International Monetary Fund. Western Hemisphere Department.
|
| ISBN |
9781475512120 |
|
1475512120 |
|
