Current Accounts and Competitiveness Issues in the North and South of the Euro Area

Mirdala, Rajmund; Ďurčová, Júlia

doi:10.1108/s1569-376720170000018013

Cited by 5 publications

(5 citation statements)

References 7 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The extent of the undervaluation has even been the most important source of competitiveness in Finland during the 2000s and the early 2010s. Overall, our ndings are in line with Arghyrou and Chortareas (2008), Belke and Dreger (2013), and Mirdala and ur£ová (2017), who show that the lack of competitiveness is a crucial explanation for rising European CA imbalances.…”

supporting

confidence: 88%

Current Account Balances’ Divergence in the Euro Area: An Appraisal of the Underlying Forces

Faure,

Grekou,

Mignon

2023

The B.E. Journal of Macroeconomics

View full text Add to dashboard Cite

This paper revisits the crucial issue of current account imbalances and focuses on the determinants of their gaps between eurozone Member States. We conduct robust estimations of the current account balances for a panel of ten founding euro area economies and construct a measure that allows us to diagnose why some countries have started to diverge from the eurozone mean in the last two decades. Our findings show evidence of remaining differences in countries’ economic development, meaning that real macroeconomic convergence has failed in the zone. Price and cost competitiveness, as well as fiscal balances, have also participated in this growing macroeconomic divergence. Overall, while the European authorities cannot influence the part of the current account gaps due to demographic factors, the role of fiscal redistribution and investment at the euro area level could help achieve macroeconomic convergence and thus reduce current accounts’ divergence in the zone.

show abstract

supporting

confidence: 88%

Current Account Balances’ Divergence in the Euro Area: An Appraisal of the Underlying Forces

Faure,

Grekou,

Mignon

2023

The B.E. Journal of Macroeconomics

View full text Add to dashboard Cite

show abstract

“…They found that current account deficits are higher in countries with fixed exchange rate regimes or in those that belong to a system of monetary union. Mirdala (2016) examined the impact of sudden exchange rate oscillations on the current account balance in EU countries during the period from 2007 to 2014. During the global economic crisis, the impact of the exchange rate on the current account was decreased, consequently diminishing the application of currency devaluation as an appropriate instrument for lessening the external disequilibrium in those countries.…”

Section: Literature Reviewmentioning

confidence: 99%

The impact of the exchange rate on the foreign trade imbalance during the economic crisis in the new EU member states and the Western Balkan countries

Rajković

Bjelić

Jaćimović

et al. 2020

Economic Research-Ekonomska Istraživanja

View full text Add to dashboard Cite

This paper examines the relationship between the real exchange rate and the foreign trade imbalance in both the Western Balkan (WB) and Central and Eastern European (CEE) countries. During the most recent global economic crisis, examining the impact of the exchange rate on the balance of trade took on a particular importance. Countries used a variety of monetary policy regimes and, depending on their choice, they had different economic instruments available to deal with the crisis. The aim of the research was whether exchange rate devaluation and/or depreciation are capable of effectively and fully eliminating the negative effects of the global economic crisis, as well as the consequent poor export performance and contracted economic activity. Our findings show that during an economic crisis those countries that use their own currency cannot substantially adjust their trade deficit by depreciating their currency. Moreover, it is suggested that during the global economic crisis, the balance of payments deficit is not impacted significantly by the exchange rate, any more. In such cases, other factors play a more significant role, like as government spending, followed by foreign demand and direct investments.

show abstract

“…However, the Slovak experience from period-based approach confi rmed regime based differences in comparison with remaining two economies. This fi nding corresponds with economic crisis intensifi ed demand driven redistributive (or expenditure shifting) effects (Mirdala, 2015). As a result, the crisis period reduced the role of public expenditures in the real output determination in the Czech Republic and with a less intensity in Hungary while in the Slovak Republic the role of public spending increased and even induced an increase in the productive capacity.…”

Section: Discussionmentioning

confidence: 97%

Effects of fiscal policy Shocks in CE3 countries (TVAR Approach)

Mirdala¹,

Kameník²

2017

E+M

Self Cite

View full text Add to dashboard Cite

Current Accounts and Competitiveness Issues in the North and South of the Euro Area

Cited by 5 publications

References 7 publications

Current Account Balances’ Divergence in the Euro Area: An Appraisal of the Underlying Forces

Current Account Balances’ Divergence in the Euro Area: An Appraisal of the Underlying Forces

The impact of the exchange rate on the foreign trade imbalance during the economic crisis in the new EU member states and the Western Balkan countries

Effects of fiscal policy Shocks in CE3 countries (TVAR Approach)

Contact Info

Product

Resources

About