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disequilibrium if the high current account surplus is included in the analysis. The paper scrutinises the evolution of Germany …- and non-price competitiveness. The latter is mainly determined by the global income elasticity for imports from Germany …, relative to the income elasticity for imports to Germany. Despite heavy fluctuations, the past trend shows a clear wedge …
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The paper evaluates current account dynamics in countries with different exchange rate regimes within the EU. In this, the empirical analysis explicitly differentiates between countries with a flexible and a fixed exchange rate regime and members of a monetary union. In addition, we model the...
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TARGET balances have risen during the period of the Eurosystem's asset purchase programme (APP). The APP gives rise to substantial cross-border flows of reserves at the time of asset purchases and beyond, reflecting the interaction of decentralised monetary policy implementation and the...
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