scholarly journals Rebalancing: Evidence from Current Account Adjustment in Europe

2013 ◽  
Author(s):  
Ruben Atoyan ◽  
Jonathan Manning ◽  
Jesmin Rahman
Keyword(s):  
Current Account ◽  
Current Account Adjustment

scholarly journals Global Current Account Adjustment: A Decomposition

2006 ◽  
pp. 1.000-25.000 ◽  
Author(s):  
Michael B. Devereux ◽  
◽  
Amartya Lahiri ◽  
Ke Pang ◽  
◽  
...  
Keyword(s):  
Current Account ◽  
Current Account Adjustment

scholarly journals An anatomy of the Spanish current account adjustment: the role of permanent and transitory factors

SERIEs ◽  
2020 ◽  
Vol 11 (4) ◽  
pp. 501-529
Author(s):  
Mar Delgado-Téllez ◽  
Enrique Moral-Benito ◽  
Francesca Viani
Keyword(s):  
Current Account ◽  
Global Financial Crisis ◽  
Recovery Period ◽  
Balance Assessment ◽  
Lower Growth ◽  
External Balance ◽  
The Global Financial Crisis ◽  
Current Account Adjustment ◽  
Country Specific

AbstractThis paper investigates how much of the current account adjustment after the global financial crisis in Spain can be explained by cyclical factors. For this purpose, we extend the IMF’s external balance assessment methodology to allow for country-specific slopes and intercepts. The good fit of these cross-country regressions implies negligible residuals for most countries, and, as a result, the positive analysis of current account decompositions provides a more informative assessment of the external balance drivers. According to our findings, around 60% of the 11 pp. adjustment of the Spanish external imbalance over the years 2008–2015 can be explained by transitory factors such as the output gap, the oil balance, and the financial cycle—a share that diminished down to 50% during the more recent recovery period. The remaining adjustment of the Spanish external balance is explained by factors such as the cyclically adjusted fiscal consolidation, population ageing, lower growth expectations, or competitiveness gains, which can all be considered as more permanent phenomena.

Sign in / Sign up

Export Citation Format

Share Document