Economics, Econometrics and Finance
4 years ago

Financial integration in EU causing growing current account imbalances, risking monetary stability.

World Economy
Current Account ‘Core–Periphery Dualism’ in the EMU
Roberta De Santis, Tatiana Cesaroni

Paper Summary

Related papers

Theme background image
Social Sciences
10 months ago

European business associations passively support, fail to drive Economic and Monetary Union.

European Integration
Welfare State
Economic Organization
1 view
Business, Management and Accounting
3 years ago

British Industry Faces Profound Changes with European Economic Union Decision

Regulatory Competition
European Integration
Judicial Review
1 view
Economics, Econometrics and Finance
8 years ago

Single European Central Bank Shapes Economic Union Without Fiscal Counterpart

International Finance
Eurozone Crisis

The article discusses how some European countries have been running persistent deficits in their current accounts without seeing the expected economic growth to balance it out. The researchers looked at the role of financial integration in causing these imbalances, focusing on countries in the Eurozone. They found that financial integration has worsened current account imbalances in peripheral countries, especially after the introduction of the Euro. This imbalance could make monetary policy less effective and increase the risk of the Eurozone breaking up.