scholarly journals Adjustment of the Internal Imbalance in the Euro Area at post-Crisis Era: Development of Current Account Balance of Southern European Countries and Structural Analysis

2017 ◽  
Vol null (45) ◽  
pp. 3-42
Author(s):  
강유덕
Keyword(s):  
Structural Analysis ◽  
Current Account ◽  
Euro Area ◽  
European Countries ◽  
Current Account Balance ◽  
Southern European Countries

scholarly journals Efficiency of Demand Shocks in Order to Reduce Current Account Imbalances in the EMU

2013 ◽  
Vol 2013 ◽  
pp. 1-17
Author(s):  
Séverine Menguy
Keyword(s):  
Current Account ◽  
Public Debt ◽  
Debt Crisis ◽  
European Countries ◽  
Demand Shock ◽  
Northern European ◽  
Current Account Imbalances ◽  
Openness To Trade ◽  
Southern European Countries ◽  
Account Imbalances

With the current European sovereign public debt crisis and current account imbalances difficulties in the EMU, many papers now underline that the problem of the European construction is its lack of institutional framework and common economic governance necessary to make a monetary union viable. According to these papers, the solution would lie in a stronger economic cooperation, with the Northern European countries contributing to lighten the burden of the Southern debtor countries. In this context, our model shows that a symmetric positive demand shock in the EMU could only slightly reduce the external indebtedness of the Southern European countries but would efficiently reduce their public debt levels. To the contrary, an asymmetric positive demand shock in the creditor Northern European countries (e.g., an increase in German wages) could reduce the current account deficits of the Southern European countries, in particular for countries with the highest openness to trade. Nevertheless, it would worsen the indebtedness levels, and it would also increase the recessionary risks in these countries.

Euro-area reforms will reinforce fiscal consolidation

2020 ◽  
Keyword(s):  
Euro Area ◽  
European Countries ◽  
Bank Failures ◽  
Fiscal Consolidation ◽  
National Parliaments ◽  
Member States ◽  
Content Type ◽  
Southern European Countries

Significance The reforms would allow the ESM, which provides emergency loans to distressed member states, to offer greater assistance to banks and enhance its capacity to design and implement bailout programmes. They will enter into force once ratified by national parliaments. Impacts The reforms will boost confidence in EU markets and reduce the risk of contagion from bank failures. The ESM will remain politically divisive, especially in southern European countries. Pressure will grow on governments to prioritise fiscal consolidation from 2022, threatening to undermine growth in weaker economies.

scholarly journals Current account imbalances in the euro area

2013 ◽  
Vol 61 (7) ◽  
pp. 2631-2638
Author(s):  
Klára Plecitá ◽  
Ladislava Grochová ◽  
Luboš Střelec
Keyword(s):  
The Netherlands ◽  
Current Account ◽  
Euro Area ◽  
International Investment ◽  
Current Account Balance ◽  
Net Income ◽  
Explanatory Variables ◽  
Economic Fundamentals ◽  
Current Account Deficits ◽  
Fiscal Balance

While the current account balance for the euro area as a whole has been in balance, divergences in current account positions among the euro-area members have widened since the introduction of the common currency euro. During the last 13 years Portugal, Greece and Spain have run large and persistent current account deficits, whereas Luxembourg, the Netherlands, Finland or Germany have displayed during the same period large and persistent surpluses. However, there is no unambiguous agreement among economists, whether this divergence of current account positions of the euro-area countries mirrors growing intra-euro-area imbalances (Gros, 2012) or just reflects proper functioning of the European integration process (Schmitz and von Hagen, 2009). Therefore, the aim of this paper is to estimate equilibrium current account position for each of the original 12 euro area countries so that it is possible to assess whether the divergence of intra-euro current account balances could be explained on the basis of economic fundamentals or it just reflects misallocation of resources and thus macroeconomic imbalances. The equilibrium current account balance is estimated using a panel-econometric technique for a sample of 30 industrial countries, which represent euro-area member states and their main business partners, over the period 1993–2011. Economic fundamentals affecting the equilibrium current account position are selected on the basis of the saving-investment balance, the trade balance and the net income balance, to ensure that we take into an account all theoretically important explanatory variables. We find that the main determinants of current account norms in our sample are fiscal balance, a country’s net international investment position, oil balance and a country’s stage of economic development. The major part of the euro-area countries exhibits current account positions close to their equilibrium levels with the exception of the Netherlands and Finland which have persistently higher surpluses, while Portugal and Greece run larger current account deficits than is their norm.

IMF Stabilization Programs, Policy Conduct and Macroeconomic Outcomes: A Case Study of Pakistan

2006 ◽  
Vol 11 (1) ◽  
pp. 35-62
Author(s):  
Nawaz A. Hakro ◽  
Wadho Waqar Ahmed
Keyword(s):  
Current Account ◽  
Inflation Rate ◽  
Current Account Balance ◽  
Macroeconomic Policies ◽  
Explanatory Variables ◽  
Fiscal Balance ◽  
Macroeconomic Impacts ◽  
The Individual ◽  
The Imf

This study is designed to assess the macroeconomic performance of fund-supported programs, and the sequencing and ordering of macroeconomic policies in the context of the Pakistan economy. The generalized evaluation estimator technique has been used to assess the macroeconomic impacts of the IMF supported programs. GDP growth, inflation rate, current account balance, fiscal balance and unemployment are used as the target variables in order to gauge economic performance during the program years. The vector of policy variables (that might have been adopted in the absence of programs) and the vector of foreign exogenous variables are also taken as explanatory variables in the model, so that the individual effect of the IMF supported programs could be assessed. The result suggests that as the IMF prescriptions were applied, the current account balance has worsened, the unemployment rate has significantly increased, and the inflation rate has increased during the years of fund-supported programs. Only the budget balance has shown signs of improvement. Furthermore an inadequate sequencing of reforms has contributed to the further worsening of the economic scenario during the program period.

Predicting the Monthly and Annual Current Account Balance from Provisional Data

1991 ◽  
Vol 67 (4) ◽  
pp. 317-330 ◽  
Author(s):  
RONALD BEWLEY ◽  
THOMAS PARRY
Keyword(s):  
Current Account ◽  
Current Account Balance ◽  
Provisional Data

The Demographic and Social Pattern of Emigration from the Southern European Countries.

1973 ◽  
Vol 7 (3) ◽  
pp. 349
Author(s):  
Nora Federici ◽  
Massimo Livi Bacci
Keyword(s):  
European Countries ◽  
Southern European Countries
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