Europe and Global Imbalances

Gian Maria Milesi-Ferretti () and Philip Lane ()

No 07/144, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: Working Paper; Financial integration; Capital flows; Europe; Current account balances (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-eec and nep-int
Date: Written 2007-06-28
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Related works:
Working Paper: Europe and Global Imbalances (2007)
Journal Article: Europe and global imbalances (2007)
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