A Framework for Assessing Global Imbalances1

Bracke, Thierry; Bussière, Matthieu; Fidora, Michael; Straub, Roland

doi:10.1111/j.1467-9701.2010.01266.x

Cited by 51 publications

(42 citation statements)

References 67 publications

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“…However, most studies have explored the determinants of current account imbalances in a global setting, see for example Chinn and Prasad (2003), Gruber and Kamin (2007), Bracke, Bussière, Fidora and Straub (2008) and Lee, Milesi-Feretti, Ostry, Prati and Ricci (2008). A smaller number of papers has analysed the development in the euro area.…”

Section: Determinants Of Current Account Positionsmentioning

confidence: 99%

Current Account Imbalances in the Euro Area: Catching Up or Competitiveness?

Belke

Dreger

2011

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The working papers published in the Series constitute work in progress circulated to stimulate discussion and critical comments. Views expressed represent exclusively the authors' own opinions and do not necessarily refl ect those of the editors. Terms of use: Documents in Ruhr Economic Papers #241

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Section: Determinants Of Current Account Positionsmentioning

confidence: 99%

Current Account Imbalances in the Euro Area: Catching Up or Competitiveness?

Belke

Dreger

2011

SSRN Journal

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“…This is a novel stance insofar as -prior to the onset of the global financial crisis, during the period referred to as the "great moderation" -the severity of the financial stability consequences stemming from gross capital flows was not recognised (Bracke et al 2010;Borio -Disyatat 2011;MNB 2011;MNB 2014). Gross flows and stocks deserve special attention because the assets of others are not available for the repayment of the debt of certain economic agents and sectors, even if the whole economy otherwise has extensive net external claims.…”

Section: Studiesmentioning

confidence: 99%

Endogenous Imbalances in a Single Currency Area

Boros¹

2017

Hitelintézeti szemle

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“…There are three main branches of literature attempting to explain global imbalances (for surveys, see Eichengreen (2005), Roubini (2006) and Bracke et al (2008)). The …rst focuses on U.S.-speci…c factors, such as the U.S. …scal de…cit (Kraay and Ventura (2005)); misalignments of the U.S. nominal exchange rate leading to excessively low import prices (Dooley et al (2004)); persistent positive U.S. return di¤erentials (Gourinchas and Rey (2005)); asset price in ‡ation or the "Great Moderation"causing low private saving in the U.S. (Fratzscher et al (2007); Foggli and Perri (2006)); and accounting de…-ciencies (incorrectly imputed intangible investments or FDI (Hausmann and Sturzenegger (2006);McGrattan and Prescott (2008))).…”

Section: Related Workmentioning

confidence: 99%

Housing Markets and Current Account Dynamics

Gete

2010

SSRN Journal

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I model global imbalances as arising from changes in preferences for housing relative to tradable goods. The key ingredients in the model are labor reallocation across sectors and consumption smoothing between housing and tradable goods. Countries import goods during periods when more domestic labor is devoted to housing construction. Housing booms are larger in countries that can run trade de…cits. This occurs despite the absence of wealth e¤ects, and even if trade is not primarily concentrated in capital goods. I provide several types of evidence to support the theory. First, over the last decade housing variables have decoupled from the business cycle while durable and total consumption expenditures have not. Second, for the same period there has been a strong cross-country correlation between housing variables and current account dynamics. Third, in a parameterized version of the model, housing demand shocks that match the cross-country dynamics of housing quantities generate current account dynamics matching recent global imbalances. Fourth, I use sign restrictions implied by the model to estimate a vector autoregression and identify the e¤ects of housing shocks on the U.S. trade de…cit. The results suggest that housing shocks are an important driving force of current account dynamics.

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A Framework for Assessing Global Imbalances1

Abstract: In 2008 all ECB publications feature a motif taken from the €10 banknote.

Cited by 51 publications

References 67 publications

Current Account Imbalances in the Euro Area: Catching Up or Competitiveness?

Current Account Imbalances in the Euro Area: Catching Up or Competitiveness?

Endogenous Imbalances in a Single Currency Area

Housing Markets and Current Account Dynamics

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