imbalances from returning as output gaps close …

The paper examines the extent to which current account imbalances of euro area countries are related to intra-euro area … factors and to external trade shocks. We argue that the traditional explanations for the rising imbalances are correct, but … balance of euro area debtor countries. While current account imbalances of euro area deficit countries vis-à-vis the rest of …

After the 2003-2007 economic boom, European countries with large pre-crisis current account imbalances are undergoing … adjustments. Countries are adjusting at different paces and ways reflecting the source and magnitude of imbalances, availability … large pre-crisis imbalances and a fixed exchange rate regime have seen sharp current account adjustments and a rebound in …