Rebalancing: Evidence from Current Account Adjustment in Europe
IMF Working Papers, March 22, 2013
Source details
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- Rebalancing: Evidence from Current Account Adjustment in Europe
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Bibliographic details
- Authors: Ruben V Atoyan, Jonathan F Manning, Jesmin Rahman
- Published: March 22, 2013
- Series: IMF Working Papers
Overview and scope
- Publication type: IMF Working Paper (Working Paper No. 2013/074; Issue: 074; Volume: 2013; Pages: 29; Stock No: WPIEA2013074).
- Authors: Ruben V Atoyan, Jonathan F Manning, Jesmin Rahman.
- Date: March 22, 2013.
- Series identifiers: ISBN: 9781484384046; ISSN: 1018-5941.
- Objective: Empirical investigation of current account (CA) adjustment in Europe with a focus on two groups: emerging European countries with large pre-crisis imbalances and a fixed exchange rate regime, and euro zone periphery countries carrying a legacy of pre-crisis CA imbalances.
Key findings on adjustment patterns
- General finding:
- After the 2003-2007 economic boom, European countries with large pre-crisis current account imbalances are undergoing adjustments.
- Countries are adjusting at different paces and in different ways, reflecting the source and magnitude of imbalances, availability of financing, competitiveness of the tradable sector and external environment.
- Emerging European countries (with large pre-crisis imbalances and a fixed exchange rate regime):
- Have seen sharp current account adjustments.
- Have experienced a rebound in growth.
- Euro zone periphery countries (also with pre-crisis CA imbalances):
- Have experienced gradual current account adjustment.
- Face difficulties bringing back growth.
Analytical focus and contributions
- Decomposition of CA adjustment into contributions from:
- Cyclical factors.
- Other (structural or non-cyclical) factors.
- Comparative analysis between:
- Emerging European economies with fixed exchange rate regimes.
- Euro zone periphery economies carrying legacy imbalances.
- Intent to draw policy conclusions based on empirical results.
Subject areas and keywords
- Subject: Balance of payments, Capital inflows, Credit, Current account, Exchange rate arrangements, Financial crises, Foreign exchange, Money.
- Keywords include: Baltics, CA adjustment, CA balance, CA deficit, Capital inflows, Competitiveness, Credit, Current account, Current Account adjustment, deficit, EU accession, Euro Zone Periphery, Europe, Exchange rate arrangements, EZ periphery, Rebalancing, WP.
Publication metadata (exact)
- Pages: 29
- Volume: 2013
- Issue: 074
- Series: Working Paper No. 2013/074
- Stock No: WPIEA2013074
- ISBN: 9781484384046
- ISSN: 1018-5941
Source: IMF Working Paper "Rebalancing: Evidence from Current Account Adjustment in Europe" by Ruben V Atoyan, Jonathan F Manning, and Jesmin Rahman, March 22, 2013.
Content in this bundle
- Microsoft Word - DMSDR1S-#5050949-v8-IMF_Working_Paper_--_CA_Adjustment_in_Europe.DOCX