The role of currency realignments in eliminating the US and China current account imbalances

2011 ◽  
Vol 33 (5) ◽  
pp. 731-736 ◽  
Author(s):  
Martin Feldstein
Keyword(s):  
Current Account ◽  
The Us ◽  
Current Account Imbalances ◽  
Account Imbalances

scholarly journals Macroeconomic Policy Making and Current Account Imbalances in the Euro Area

2021 ◽  
Vol 54 (3) ◽  
pp. 347-373
Author(s):  
Taiki Murai ◽  
Gunther Schnabl
Keyword(s):  
Monetary Policy ◽  
Current Account ◽  
Euro Area ◽  
Debt Crisis ◽  
Bank Lending ◽  
Recent Developments ◽  
Current Account Imbalances ◽  
Fiscal And Monetary Policy ◽  
Account Imbalances

The paper analyses the role of fiscal and monetary policy for the development of the current account imbalances in the euro area, including the most recent developments during the coronavirus crisis. Several financial transmission channels such as international bank lending, changes in TARGET2 balances, international rescue credit and government bond purchases of euro area central banks are identified. It is found that differing fiscal policy stances which have interacted differently with the ECB’s monetary policy have been at roots of first diverging and then converging current account positions in the euro area. Since the European financial and debt crisis, public financing mechanisms and the unconventional monetary of the ECB have contributed to the persistence of intra-euro area current account imbalances.

Correcting US Imbalances

2005 ◽  
Vol 192 ◽  
pp. 33-39 ◽  
Author(s):  
Ali Al-Eyd ◽  
Ray Barrell ◽  
Olga Pomerantz
Keyword(s):  
Exchange Rates ◽  
Current Account ◽  
Current Account Deficit ◽  
The Us ◽  
Current Account Imbalances ◽  
The Government ◽  
Consequent Increase ◽  
Account Imbalances

In the January Review discussion of the US current account imbalances, we explored the links between the US current account deficit and exchange rates, and focused on the economic adjustments required to correct the US ‘triple’ deficits. Using NiGEM, we illustrated that a sustained adjustment in the US current account deficit cannot be achieved through a temporary nominal depreciation alone – whether risk or policy driven – but also requires a redressing of the government and household imbalances and a consequent increase in national savings.

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