Arbeitspapier

Money Overhang, Credit Overhang and Financial Imbalances in the Euro Area

This paper focusses on the relation between external imbalances and domestic money and credit growth in the euro area. We compute money and credit overhang both for the euro area as a whole and for individual member countries. Our results show that both aggregate money and credit overhang have trend-like increased since the early 2000s. The increase in money overhang has been rather evenly spread over the member states but the increase in credit overhang has been unevenly spread and has mainly occurred in the GIIP. We apply panel analysis to detect temporal patterns between the developments in money overhang, credit overhang and external indebtedness. Looking at the groups of GIPS countries in isolation, net debt flows do play a significant role to explain money and credit overhang.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 4476

Classification
Wirtschaft
Monetary Policy, Central Banking, and the Supply of Money and Credit: General

Event
Geistige Schöpfung
(who)
Kool, Clemens
de Regt, Erik
van Veen, Tom
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2013

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Kool, Clemens
  • de Regt, Erik
  • van Veen, Tom
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2013

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