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dc.contributor.authorKörner, Finn Martenen_US
dc.contributor.authorZemanek, Holgeren_US
dc.date.accessioned2012-07-11en_US
dc.date.accessioned2012-07-25T09:38:41Z-
dc.date.available2012-07-25T09:38:41Z-
dc.date.issued2012en_US
dc.identifier.urihttp://hdl.handle.net/10419/60098-
dc.description.abstractIn this paper we study the intra-euro area imbalances based on a dynamic general equilibrium model. We show that European financial integration and the introduction of the euro might have contributed to the development of imbalances. Interest rate convergence following EMU accession led to net foreign debt positions, which prove difficult to reverse. Simulation results for the euro area suggest that current account imbalances and foreign debt positions of today's crisis countries have significantly diverged from a sustainable path. Increasing investment in the EMU core and productivity in crisis countries may permit a return to sustainable foreign debt levels and correct macroeconomic imbalances in the euro area.en_US
dc.language.isoengen_US
dc.publisherUniv., Wirtschaftswissenschaftliche Fakultät Leipzigen_US
dc.relation.ispartofseriesWorking Paper, Universität Leipzig, Wirtschaftswissenschaftliche Fakultät 109en_US
dc.subject.jelE44en_US
dc.subject.jelF32en_US
dc.subject.jelF34en_US
dc.subject.jelG15en_US
dc.subject.ddc330en_US
dc.subject.keywordcurrent account imbalancesen_US
dc.subject.keywordeuro areaen_US
dc.subject.keywordforeign debten_US
dc.subject.keywordsustainabilityen_US
dc.subject.keywordgeneral equilibrium modelen_US
dc.titleOn the brink? Intra-euro area imbalances and the sustainability of foreign debten_US
dc.typeWorking Paperen_US
dc.identifier.ppn719263379en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:leiwps:109-
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