{
  "title": "European Financial Linkages: A New Look At Imbalances",
  "publication": "IMF Working Papers, December 1, 2010",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/european-financial-linkages-a-new-look-at-imbalances-24527",
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  "summary": "We document external investment positions among European Union countries at the start of the financial crisis through the creation of a new database comprising bilateral external financial asset and liabilities, excluding reserve assets and derivatives.",
  "sections": [
    {
      "heading": "Dataset and scope",
      "content": "- New database comprising bilateral external financial assets and liabilities, excluding reserve assets and derivatives.\n- Covers reported bilateral net international investment positions (IIPs) among European Union countries at the start of the financial crisis.\n- Data have some gaps, but overall coverage of reported bilateral net IIPs is described as satisfactory."
    },
    {
      "heading": "Key findings",
      "content": "- Creditor and debtor positions vis-à-vis the rest of the EU tended to increase between 2000 and 2008.\n- Capital largely flowed from wealthier to catching-up economies.\n- The patterns of bilateral positions yield a richer picture of financial linkages and enable mapping of the financing of Euro area imbalances.\n- These developments resulted in an increased interdependency among Euro Area economies."
    },
    {
      "heading": "Thematic focus",
      "content": "- Balance of payments and external position analysis using bilateral IIP data.\n- Emphasis on financial integration, foreign assets, foreign direct investment, and international investment position across EU and Euro area countries.\n- Consideration of country roles (creditor country, debtor country) and regional groupings (Euro area, Baltics, Luxembourg, France, Germany, UK)."
    },
    {
      "heading": "Implications (analytical)",
      "content": "- Bilateral IIP data provide a more detailed view of financing channels underlying current account imbalances within the Euro area.\n- Increasing creditor–debtor linkages heighten cross-country interdependence, with potential implications for vulnerability transmission during crises.\n\nSource: European Financial Linkages: A New Look At Imbalances, Claire Waysand, Kevin Ross, John C De Guzman, December 1, 2010.\n\n---\n\n Content in this bundle\n\n- wp10295\n  - wp10295 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp10295 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/european-financial-linkages-a-new-look-at-imbalances-24527"
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    "Authors: Claire Waysand, Kevin Ross, John C De Guzman",
    "Published: December 1, 2010",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781455211760.001",
    "New database comprising bilateral external financial assets and liabilities, excluding reserve assets and derivatives.",
    "Covers reported bilateral net international investment positions (IIPs) among European Union countries at the start of the financial crisis.",
    "Data have some gaps, but overall coverage of reported bilateral net IIPs is described as satisfactory.",
    "Creditor and debtor positions vis-à-vis the rest of the EU tended to increase between 2000 and 2008.",
    "Capital largely flowed from wealthier to catching-up economies.",
    "The patterns of bilateral positions yield a richer picture of financial linkages and enable mapping of the financing of Euro area imbalances.",
    "These developments resulted in an increased interdependency among Euro Area economies.",
    "Balance of payments and external position analysis using bilateral IIP data.",
    "Emphasis on financial integration, foreign assets, foreign direct investment, and international investment position across EU and Euro area countries.",
    "Consideration of country roles (creditor country, debtor country) and regional groupings (Euro area, Baltics, Luxembourg, France, Germany, UK).",
    "Bilateral IIP data provide a more detailed view of financing channels underlying current account imbalances within the Euro area.",
    "Increasing creditor–debtor linkages heighten cross-country interdependence, with potential implications for vulnerability transmission during crises.",
    "**_wp10295**"
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