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Europe and Global Imbalances

Author

Listed:
  • Philip R. Lane
  • Gian Maria Milesi-Ferretti
Abstract
Although Europe in the aggregate is a not a major contributor to global current account imbalances, its trade and financial linkages with the rest of the world mean that it will still be affected by a shift in the current configuration of external deficits and surpluses. We assess the macroeconomic impact on Europe of global current account adjustment under alternative scenarios, emphasizing both trade and financial channels. Finally, we consider heterogeneous exposure across individual European economies to external adjustment shocks.

Suggested Citation

  • Philip R. Lane & Gian Maria Milesi-Ferretti, 2007. "Europe and Global Imbalances," The Institute for International Integration Studies Discussion Paper Series iiisdp226, IIIS.
    • Handle: RePEc:iis:dispap:iiisdp226
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    References listed on IDEAS

    as
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    Keywords

    Financial integration; capital flows; external assets and liabilities;
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