Despite performing very positively on some key macroeconomic indicators in recent years, the German economy is in grave disequilibrium if the high current account surplus is included in the analysis. The paper scrutinises the evolution of Germany's external surplus since the inception of the...

The Romanian agri-food trade has registered a permanent deficit during the last three decades (with a brief exception period, 2013-2014). The deficit was deepened by the negative trade balance with the EU countries, but since 2010, the deficit has been partially offset by the trade surplus with...

In terms of size, the net income balance (IB) is comparable to the trade balance (TB) for many countries. Yet the role of the IB in mitigating external vulnerabilities or complicating external adjustment remains underexplored. This paper studies the role of the IB in stabilizing or destabilizing...

In this paper, we investigate the relationship between different loan types and the current account balance along with its sub-components. Our empirical results suggest that a rise in total loans inevitably leads to a deterioration in the current account balance. This relationship is preserved...

It is a well-established regularity that permanent oil price shocks do not have a permanent effect on the current account deficit. This requires that sub-components of the current account or trade balance will make the necessary adjustments to accommodate the higher energy bill of a country...

Should we blame the euro for widening of current account deficits in the EMU? In this paper, we employ time-specific fixed effect estimator to study determinants of the current account deficits of the EU countries before and after adoption of the euro. Our aim is to assess to what extent the...

The aim of this study is to assess the relationship between trade balance and public budget in the ASEAN countries. Using yearly data for the period between 1980 and 2012 in ten member states, a long-run relationship between current account balance and net lending emerge, both in ASEAN-6 and in...