Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/246163 
Year of Publication: 
2021
Series/Report no.: 
ECB Working Paper No. 2586
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
Abstract: 
We investigate, in the case of Germany, the positive correlation between the cyclical components of the corporate saving glut in the non-financial corporate sector and the current account surplus from a capital account perspective. Employing sign restrictions, our findings suggest that mostly labor supply, world demand and financial friction shocks account for the joint dynamics of excess corporate saving and the current account surplus. Household saving shocks, by contrast, cannot explain the correlation. We conclude that, explained through these factors, the corporate saving glut is an important driver of the cyclical component of the current account.
Subjects: 
Current account
corporate saving
macro shocks
JEL: 
E32
F32
F45
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-4809-8
Document Type: 
Working Paper

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