EconPapers    
Economics at your fingertips  
 

Current Account Imbalances in Europe

Philip Lane and Barbara Pels

The Institute for International Integration Studies Discussion Paper Series from IIIS

Abstract: The European crisis is partly attributable to the sharp increase in external imbal- ances across Europe during the pre-crisis period. We examine current account imbal- ances in Europe over 1995-2007, together with the underlying saving and investment rates (and their subcomponents). We O?nd that the discrete expansion in current ac- count imbalances during the 2002-2007 period can be attributed to a strengthening in the link between growth forecasts and current account balances. A striking pattern was that greater optimism about future growth was associated with lower savings and higher construction investment, rather than investment in productive capital.

Keywords: current account; EMU (search for similar items in EconPapers)
JEL-codes: E63 F41 (search for similar items in EconPapers)
Date: 2012-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20) Track citations by RSS feed

Downloads: (external link)
https://www.tcd.ie/triss/assets/PDFs/iiis/iiisdp397.pdf

Related works:
Working Paper: Current Account Imbalances in Europe (2012) Downloads
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:iis:dispap:iiisdp397

Access Statistics for this paper

More papers in The Institute for International Integration Studies Discussion Paper Series from IIIS 01. Contact information at EDIRC.
Bibliographic data for series maintained by Maeve ().

 
Page updated 2019-11-19
Handle: RePEc:iis:dispap:iiisdp397