Europe and Global Imbalances

Author/Editor:

Philip R. Lane ; Gian M Milesi-Ferretti

Publication Date:

June 1, 2007

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Although Europe in the aggregate is a not a major contributor to global current account imbalances, its trade and financial linkages with the rest of the world mean that it will still be affected by a shift in the current configuration of external deficits and surpluses. We assess the macroeconomic impact on Europe of global current account adjustment under alternative scenarios, emphasizing both trade and financial channels. Finally, we consider heterogeneous exposure across individual European economies to external adjustment shocks.

Series:

Working Paper No. 07/144

Subject:

English

Publication Date:

June 1, 2007

ISBN/ISSN:

9781451867084/1018-5941

Stock No:

WPIEA2007144

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

59

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