account imbalances would be significantly reduced if budget consolidation was larger in countries with current account … deficits. …

The paper examines the causes, consequences, and potential cures of the large current account deficits in the Southern … the Euro, which enabled these countries to maintain investment rates, and thus run larger current account deficits, by … the global financial crisis has started to force some unwinding, the current account deficits are expected to remain high …

ratio of private credit to GDP, current account deficits, and openness to trade are helpful in understanding the intensity … output declines, while those countries with large pre-crisis current account deficits saw domestic demand fall by much more …

of about 20 per cent. The current account deficits of many of these economies which were quite large prior to the crisis …