Bilateral current account rebalancing in the EMU
The link between Germany and the eurozone peripheral countries
Economic Trends
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Abstract
Some current account rebalancing within EMU is currently in progress. Following the financial crisis, German current account surpluses with Italy, Spain, Portugal and Greece have decreased. The following article shows that rebalancing has been achieved mainly at the expense of domestic demand in these countries. Moreover, although all four peripheral countries have achieved some rebalancing of their current accounts vis-à-vis Germany, the path of adjustment differs.
Keywords
Current Account Euro Area Aggregate Demand Private Consumption Domestic Demand
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© ZBW and Springer-Verlag 2012