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On Current Account Surpluses and the Correction of Global Imbalances

Edwards, Sebastian - 2007

In this paper I analyze the nature of external adjustments in current account surplus countries. I ask whether a realignment of world growth rates -- with Japan and Europe growing faster, and the U.S. growing more slowly -- is likely to solve the current situation of global imbalances. The main...

Persistent link: https://www.econbiz.de/10012465752

The Eurocrisis : Muddling Through, or On the Way to a More Perfect Euro Union?

Aizenman, Joshua - 2014

This paper looks at the short history of the Eurozone through the lens of an evolutionary approach to forming new … institutions. The euro has operated as a currency without a state, under the dominance of Germany. This has so far allowed the euro … to achieve a number of design objectives, and this may continue, as long as Germany does not shirk its growing …

Persistent link: https://www.econbiz.de/10012458424

Excess Savings and Twin Deficits : The Transmission of Fiscal Stimulus in Open Economies

Aggarwal, Rishabh; Auclert, Adrien; Rognlie, Matthew; … - National Bureau of Economic Research - 2022

We study the effects of debt-financed fiscal transfers in a general equilibrium, heterogeneous-agent model of the world economy. In the long run, increases in government debt anywhere raise the world interest rate and increase private wealth everywhere. In the short run, a country with a...

Persistent link: https://www.econbiz.de/10013334403

A Portfolio Approach to Global Imbalances

Jiang, Zhengyang; Richmond, Robert J.; Zhang, Tony - National Bureau of Economic Research - 2022

We use a portfolio-based framework to understand what drives the decline of the U.S. net foreign asset (NFA) position and the reversal in returns earned on the US NFA (exorbitant privilege). We show that global savings gluts and monetary policies widened the U.S. NFA position, while investor...

Persistent link: https://www.econbiz.de/10013334470

Target Loans, Current Account Balances and Capital Flows : The ECB's Rescue Facility

Sinn, Hans-Werner - 2011

additional central bank money that flowed to the euro core countries, Germany in particular, and crowded out the central bank …

Persistent link: https://www.econbiz.de/10012461031

Incentive-Compatible Unemployment Reinsurance for the Euro Area

Karajvanov, Alexander K.; Mojon, Benoît; Silva, Luiz … - National Bureau of Economic Research - 2024

We model a reinsurance mechanism for the national unemployment insurance programs of euro area member states. The risk-sharing scheme we analyze is designed to smooth country-level unemployment risk and expenditures around each country's median level, so that participation and contributions...

Persistent link: https://www.econbiz.de/10014544675

Financial Openness, Sudden Stops and Current Account Reversals

Edwards, Sebastian - 2004

In this paper I use a panel data set to investigate the mechanics of sudden stops of capital inflows and current account reversals. I am particularly interested in four questions: (a) What is the relationship between sudden stops and current account reversals? (b) To what extent does financial...

Persistent link: https://www.econbiz.de/10012468416

Current Account Fact and Fiction

Backus, David - 2009

With US trade and current account deficits approaching 6% of GDP, some have argued that the country is "on the comfortable path to ruin" and that the required "adjustment'' may be painful. We suggest instead that things are fine: although national saving is low, the ratios of household and...

Persistent link: https://www.econbiz.de/10012463124

Globalization and the Sustainability of Large Current Account Imbalances : Size Matters

Aizenman, Joshua - 2008

This paper evaluates the sustainability of large current account imbalances in the era when the Chinese GDP growth rate and current account/GDP exceed 10%. We investigate the size distribution and the durability of current account deficits during 1966-2005, and report the results of a simulation...

Persistent link: https://www.econbiz.de/10012464913

Current Account Reversals and Currency Crises : Empirical Regularities

Milesi-Ferrett, Gian Maria - 1998

This paper studies sharp reductions in current account deficits and large exchange rate depreciations in low- and middle-income countries. It examines which factors help predict the occurrence of a reversal or a currency crisis, and how these events affect macroeconomic performance. It finds...

Persistent link: https://www.econbiz.de/10012472191