The appropriateness of the macroeconomic imbalance procedure for Central and Eastern European Countries

Geraldine Dany-Knedlik, Martina Kämpfe and Tobias Knedlik

EconStor Open Access Articles and Book Chapters, 2021, vol. 48, issue 1, 123-139

Abstract: The European Commission’s Scoreboard of Macroeconomic Imbalances is a rare case of a publicly released early warning system. It was published first time in 2012 by the European Commission as a reaction to public debt crises in Europe. So far, the Macroeconomic Imbalance Procedure takes a one-size-fits-all approach with regard to the identification of thresholds. The experience of Central and Eastern European Countries during the global financial crisis and in the resulting public debt crises has been largely different from that of other European countries. This paper looks at the appropriateness of scoreboard of the Macroeconomic Imbalances Procedure of the European Commission for this group of catching-up countries. It is shown that while some of the indicators of the scoreboard are helpful to predict crises in the region, thresholds are in most cases set too narrow since it largely disregarded the specifics of catching-up economies, in particular higher and more volatile growth rates of various macroeconomic variables.

Keywords: Macroeconomic Imbalances Procedure (MIP); Scoreboard; Central and Eastern European Countries (CEEC); Early warning system; Signals approach; Probid method (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/240918/1/D ... nessOfTheMacroec.pdf (application/pdf)

Related works:
Journal Article: The appropriateness of the macroeconomic imbalance procedure for Central and Eastern European Countries (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:espost:240918

DOI: 10.1007/s10663-020-09471-9

Access Statistics for this article

More articles in EconStor Open Access Articles and Book Chapters from ZBW - Leibniz Information Centre for Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().