The corporate saving glut and the current account in Germany

Thorsten Klug, Eric Mayer and Tobias Schuler

No 2586, Working Paper Series from European Central Bank

Abstract: We investigate, in the case of Germany, the positive correlation between the cyclical components of the corporate saving glut in the non-financial corporate sector and the current account surplus from a capital account perspective. Employing sign restrictions, our findings suggest that mostly labor supply, world demand and financial friction shocks account for the joint dynamics of excess corporate saving and the current account surplus. Household saving shocks, by contrast, cannot explain the correlation. We conclude that, explained through these factors, the corporate saving glut is an important driver of the cyclical component of the current account. JEL Classification: E32, F32, F45

Keywords: corporate saving; current account; macro shocks (search for similar items in EconPapers)
Date: 2021-08
New Economics Papers: this item is included in nep-cwa, nep-eec, nep-fdg, nep-isf, nep-mac and nep-opm
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: The corporate saving glut and the current account in Germany (2022)
Working Paper: The Corporate Saving Glut and the Current Account in Germany (2019)
Working Paper: The corporate saving glut and the current account in Germany (2019)
Working Paper: The Corporate Saving Glut and the Current Account in Germany (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20212586

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