We argue that if currency union member states have different potential output per capita, output growth rates, or trade balances, the common monetary policy may not be optimal for all of them. Euro area imbalances for potential output and for trade balances are quite large, while output growth...

During the process of accession to the Eurozone, some member countries experienced a rapid increase in credit availability fueled by the fast convergence of interest rates. This was accompanied by large current account deficits and booms in the housing sector. This paper argues that these...

Current account deficit has been a popular research topic among Turkish economists. The study investigates the relation between current account deficit of Turkey and house prices in the country. This paper uses the classical linear regression model and this is run for three times. The results of...

Consider two views of the global financial crisis. One view looks across the border: it blames external imbalances, the unprecedented current account deficits and surpluses in recent years. Another view looks within the border: it faults domestic financial systems where risks originated in...

Current account deficit has been a popular research topic among Turkish economists. The study investigates the relation between current account deficit of Turkey and house prices in the country. This paper uses the classical linear regression model and this is run for three times. The results of...

Makro ekonomik göstergelerde 2002 yılından itibaren yaşanan olumlu gelişmelere rağmen, aynı yıldan itibaren Türkiye'de cari açık temel makroekonomik sorun olarak 2012 yılına kadar önemini artırarak devam etmiştir. Türkiye'nin cari açığı azaltarak yönetilebilir bir düzeye...

In the economic literature, there is no consensus on the direction of the relationship between current account balance and inflation rates in the context of economic policies. Therefore, the relationship between inflation and current account balance is examined as asymmetrical for the Turkish...

The paper investigates whether higher financial integration leads in general to slower current account adjustments. The study estimates theoretically founded trade balance reaction functions for a panel of seventy countries from 1970-2004. The empirical analysis finds that adjustment in...

We study international business cycles and capital flows in the UK, the United States and the Emerging Periphery in the period 1885-1939. Based on the same set of parameters, our model explains current account dynamics under both the Classical Gold Standard and during the Interwar period. We...

Both theoretical and operational definitions of current account sustainability show a persistent and fragile current account balance (deficit) for Ghana. This has created a financing gap in the Ghanaian economy, typically filled by capital inflows, in particular aid. Even as Ghana depends to a...