This paper extends the model of Engler et al. (2007) on the adjustment of the US current account to a three-country world economy. This allows an analysis of the differential impact of a reversal of the US current account on Europe and Asia. In particular, the outcomes under different exchange...

Many of the emerging market economies in Europe are presently running current account deficits which are quite high relative to any global or historical standard and are fundamentally unsustainable. This includes the three poorer European Union (EU) members of the old Europe (Greece, Portugal,...

Ever since its foundation, the European Union (EU) has struggled to develop a collective “European identity”, while being exposed to the challenges of globalization, financial disturbances, migration, Brexit, and the coronavirus. However, the hitherto unimaginable Russian inroad on...