Macroeconomic Policy Making and Current Account Imbalances in the Euro Area

Arbeitspapier

The paper analyses the role of fiscal and monetary policy for the development of the current account imbalances in the euro area, including the most recent developments during the coronavirus crisis. Several financial transmission channels such as international bank lending, changes in TARGET2 balances, international rescue credit and government bond purchases of euro area central banks are identified. It is found that differing fiscal policy stances which have interacted differently with the ECB’s monetary policy have been at roots of first diverging and then converging current account positions in the euro area. Since the European financial and debt crisis, public financing mechanisms and the unconventional monetary of the ECB have contributed to the persistence of intra-euro area current account imbalances.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 9153

Klassifikation und Themen

• Klassifikation: Wirtschaft ; National Deficit; Surplus ; Current Account Adjustment; Short-term Capital Movements ; International Monetary Arrangements and Institutions ; International Policy Coordination and Transmission
• Thema: current account ; current account imbalances ; financial account ; euro ; European Monetary Union ; monetary policy ; fiscal policy ; TARGET2

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Murai, Taiki ; Schnabl, Gunther
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and Ifo Institute (CESifo)
• (wo): Munich
• (wann): 2021

Weitere Informationen

• Handle: http://hdl.handle.net/10419/236695
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ