Northern European countries, in particular Germany, have tended to be in surplus. The paper scrutinizes the role of diverging …

crisis in the Euro-zone is driven primarily by fiscal fragility in the South. A relatively simple model shows how poor … government bond yield spreads relative to Germany suggests that both views in fact provide useful insights into the roots of the …

Euro area countries. With respect to the surplus country (Germany), countries running a trade deficit (Spain, Italy) are …

member states, such as Germany, the Netherlands and Finland …

two deficits is asymmetric and the negative impact of the recent Eurozone banking and sovereign debt crisis on the current … positive impact of the budget balance on the current account balance is higher in the cases of non-Eurozone countries, high … budget deficit countries, and low exports countries, whereas it is lower in the cases of Eurozone countries, low budget …