Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/191285
Authors: 
Klug, Thorsten
Schuler, Tobias
Mayer, Eric
Year of Publication: 
2018
Series/Report no.: 
ifo Working Paper No. 280
Abstract: 
We investigate for Germany the positive correlation between the corporate savings glut in the non-financial corporate sector and the current account surplus from a capital account perspective. By employing sign restrictions our findings suggest that mostly labor market, world demand and financial friction shocks can account for the joint dynamics of excess corporate savings and the current account surplus. Private savings shocks, in contrast, cannot explain the correlation. We conclude that a corporate savings glut is a main driver of the current account surplus.
Subjects: 
Current account
corporate savings
macro shocks
JEL: 
E32
F32
F45
Document Type: 
Working Paper

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