Current accounts and financial flows in the euro area

Asymmetric Credit Growth and Current Account Imbalances in the Euro Area

“…Whereas there is considerable evidence that the current accounts of the deficit countries were mainly financed by flows of debt securities and loans from banks in the surplus countries (see, for example, Spiegel, 2009;Lane, 2013;Hobza and Zeugner, 2014), the empirical literature has so far failed to establish a clear direction of causality between domestic and external credit. The most commonly found theoretical presumption is that inflows of external credit -i.e.…”

“…Table 12 in the appendix shows the results when the push factors corrected for changes in TARGET2 balances are included in the reference model as well as baseline model II including the credit pull factor REALBAN KLOAN S. As the Hausman test indicates systematic differences in coefficients in four of the ten models, the mean group estimator 18 When Belgium is excluded the parameters of the model cannot be estimated. 19 According to the estimates by Hobza and Zeugner (2014), France acted as an intermediary for funds from the rest of the world to the deficit countries, while its current account was roughly in balance. Accordingly, the inclusion of France could potentially downward bias the estimates of the domestic push factor.…”

Economic sustainability and possibilities of action for the states, in the case of monetary integration: some notes for reflection

“…Belke and Rees (2014) have investigated whether there is increasing uncertainty for monetary policy in the wake of globalisation and whether central banks have become less effective in influencing national liquidity conditions, and they conclude that the answer to both questions is clearly affirmative, and they assess that national monetary policy is faced with an increasing degree of uncertainty. Hobza and Zeugner (2014) analysed the national and supranational linkages, exploring the nature and strength of financial interlinkages within the euro area, with the rest of the EU and major global financial partners. Regarding the convergence among countries Gonda (2006), Bearce (2009) and Mendonca (2014), among others, have analysed, from different perspectives, the situation in the context of the euro zone.…”

Drivers of European Transition Countries’ External Current Accounts: An LSDVC Approach

“…From a geographical perspective, the academic literature on current account deficits has been primarily concerned with the sizable and persistent external imbalances of the United States (e.g., Chakraborty and Dekle 2009;Duncan 2015;Ivanova 2010;Kim and Roubini 2008;Mussa 2007;Sooreea and Wheeler 2010) and of the euro area (e.g., Blanchard and Giavazzi 2002;Brissimis et al 2013;Campa and Gavilan 2011;Ca'Zorzi and Rubaszek 2012;Chen, Milesi-Ferretti, and Tressel 2013;Di Mauro and Pappada 2014;Hobza and Zeugner 2014;Körner and Zemanek 2013;Lane and Milesi-Ferretti 2007). Due to their minuscule geopolitical importance, very little academic attention has been devoted to the European transition countries (e.g., Aristovnik 2006Aristovnik , 2008Bussière, Fratzscher, and Müller 2006).…”