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Asymmetric credit growth and current account imbalances in the euro area

Unger, Robert - 2015

The euro area crisis is often linked to the emergence of current account imbalances. As most of the deficit countries experienced pronounced credit booms at the same time that these imbalances were building up, this paper investigates the link between domestic credit developments and the current...

Persistent link: https://www.econbiz.de/10011373649

Current account adjustment in EU countries : does euro-area membership make a difference?

Herrmann, Sabine; Jochem, Axel - 2013

The paper evaluates current account dynamics in countries with different exchange rate regimes within the EU. In this, the empirical analysis explicitly differentiates between countries with a flexible and a fixed exchange rate regime and members of a monetary union. In addition, we model the...

Persistent link: https://www.econbiz.de/10010211960

Capital flows in the euro area and TARGET2 balances

Hristov, Nikolay; Hülsewig, Oliver; Wollmershäuser, Timo - 2019

, Ireland and Portugal, while to a smaller extent depressing aggregate economic activity in core member states, such as Germany …

Persistent link: https://www.econbiz.de/10012034705

Fiscal devaluation in a monetary union : conference paper

Engler, Philipp; Ganelli, Giovanni; Tervala, Juha; … - 2014

Between 1999 and the onset of the economic crisis in 2008 real exchange rates in Greece, Ireland, Italy, Portugal and Spain appreciated relative to the rest of the euro area. This divergence in competitiveness was reflected in the emergence of current account imbalances. Given that exchange rate...

Persistent link: https://www.econbiz.de/10010487256

Fiscal devaluation in a Monetary Union

Engler, Philipp; Ganelli, Giovanni; Tervala, Juha; … - 2013

Persistent link: https://www.econbiz.de/10010221275

German wage moderation and European imbalances : feeding the global VAR with theory

Bettendorf, Timo; León-Ledesma, Miguel A. - 2015

bargaining shock. We then impose these restrictions on a Global VAR consisting of Germany and 8 EMU countries to identify a wage … bargaining shock in Germany. Our results show that, although the German current account was significantly affected by wage …

Persistent link: https://www.econbiz.de/10011292316

Rebalancing the euro area : is wage adjustment in Germany the answer?

Hoffmann, Mathias; Kliem, Martin; Krause, Michael; … - 2020

We assess to what extent wage inflation policies in Germany could contribute to an economic rebalancing in the euro … and output in Germany and the rest of the euro area. The duration of constant interest rates and expectations about the … consists of Germany, the rest of the euro area, and the rest of the world. …

Persistent link: https://www.econbiz.de/10012184056

The expectations-driven US current account

Hoffmann, Mathias; Krause, Michael; Laubach, Thomas - 2013

Since 1991, survey expectations of long-run output growth for the U.S. relative to the rest of the world exhibit a pattern strikingly similar to that of the U.S. current account, and thus also to global imbalances. We show that this finding can to a large extent be rationalized in a two-region...

Persistent link: https://www.econbiz.de/10009732995

Current account deficits during heightened risk : menacing or mitigating?

Forbes, Kristin; Hjortsoe, Ida; Nenova, Tsvetelina - 2016

Large current account deficits, and the corresponding reliance on capital flows from abroad, can increase a country's vulnerability to periods of heightened risk and uncertainty. This paper develops a framework to evaluate such vulnerabilities. It highlights the central importance of two...

Persistent link: https://www.econbiz.de/10011477292

Transmission of global financial shocks to EMU member states : the role of monetary policy and national factors

Gelman, Maria; Jochem, Axel; Reitz, Stefan - 2016

The paper analyses the transmission of global financial shocks to individual member states of the European Monetary Union (EMU), in which monetary policy is delegated to the ECB and financial markets are fully integrated. Using a panel VAR model, we show that the asymmetric effects of global...

Persistent link: https://www.econbiz.de/10011495568