## Rebalancing: Evidence from Current Account Adjustment in Europe

_IMF Working Papers, March 22, 2013_

## Source details

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## Bibliographic details
- Authors: Ruben V Atoyan, Jonathan F Manning, Jesmin Rahman
- Published: March 22, 2013
- Series: IMF Working Papers

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### 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.*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/rebalancing-evidence-from-current-account-adjustment-in-europe-40422_