{
  "title": "External Imbalances in the Euro Area",
  "publication": "IMF Working Papers, September 28, 2012",
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  "summary": "The paper examines the extent to which current account imbalances of euro area countries are related to intra-euro area factors and to external trade shocks. We argue that the traditional explanations for the rising imbalances are correct, but are incomplete.",
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    {
      "heading": "Overview and research question",
      "content": "- Authors: Ruo Chen, Gian M Milesi-Ferretti, Thierry Tressel\n- Publication date: September 28, 2012\n- Paper examines the extent to which current account imbalances of euro area countries are related to:\n  - intra-euro area factors, and\n  - external trade shocks."
    },
    {
      "heading": "Key findings",
      "content": "- Traditional explanations for rising imbalances are correct but incomplete.\n- Large impact of:\n  - declines in export competitiveness, and\n  - asymmetric trade developments vis-à-vis the rest of the world,\n    - in particular vis-à-vis China, Central and Eastern Europe, and oil exporters,\n  on the external balance of euro area debtor countries.\n- While current account imbalances of euro area deficit countries vis-à-vis the rest of the world increased, they were financed mostly by intra-euro area capital inflows, notably:\n  - the purchase of government and financial institutions’ securities, and\n  - cross-border interbank lending.\n- These intra-euro area financings permitted external imbalances to grow over time."
    },
    {
      "heading": "Subjects and keywords (as provided)",
      "content": "- Subjects: Demand elasticity, Economic theory, Exports, Foreign exchange, Imports, International trade, Real exchange rates, Trade balance\n- Keywords: area country; area debtor countries; area export; Asia and Pacific; debtor country; demand elasticity; Demand elasticity; euro; euro area; export; Exports; external imbalances; financial integration; Imports; Real exchange rates; Southern Europe; terms of trade; terms of trade shocks; Trade balance; WP\n\n---\n\n Content in this bundle\n\n- wp12236\n  - wp12236 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp12236 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/external-imbalances-in-the-euro-area-40027"
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    "Authors: Ruo Chen, Gian M Milesi-Ferretti, Thierry Tressel",
    "Published: September 28, 2012",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781475524673.001",
    "Authors: Ruo Chen, Gian M Milesi-Ferretti, Thierry Tressel",
    "Publication date: September 28, 2012",
    "Paper examines the extent to which current account imbalances of euro area countries are related to:",
    "Traditional explanations for rising imbalances are correct but incomplete.",
    "Large impact of:",
    "While current account imbalances of euro area deficit countries vis-à-vis the rest of the world increased, they were financed mostly by intra-euro area capital inflows, notably:",
    "These intra-euro area financings permitted external imbalances to grow over time.",
    "Subjects: Demand elasticity, Economic theory, Exports, Foreign exchange, Imports, International trade, Real exchange rates, Trade balance",
    "Keywords: area country; area debtor countries; area export; Asia and Pacific; debtor country; demand elasticity; Demand elasticity; euro; euro area; export; Exports; external imbalances; financial integration; Imports; Real exchange rates; Southern Europe; terms of trade; terms of trade shocks; Trade balance; WP",
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