Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/293914 
Year of Publication: 
2021
Citation: 
[Journal:] Credit and Capital Markets – Kredit und Kapital [ISSN:] 2199-1235 [Volume:] 54 [Issue:] 3 [Year:] 2021 [Pages:] 347-373
Publisher: 
Duncker & Humblot, Berlin
Abstract: 
The paper analyses the role of fiscal and monetary policy for the development of the current account imbalances in the euro area, including the most recent developments during the coronavirus crisis. Several financial transmission channels such as international bank lending, changes in TARGET2 balances, international rescue credit and government bond purchases of euro area central banks are identified. It is found that differing fiscal policy stances which have interacted differently with the ECB's monetary policy have been at roots of first diverging and then converging current account positions in the euro area. Since the European financial and debt crisis, public financing mechanisms and the unconventional monetary of the ECB have contributed to the persistence of intra-euro area current account imbalances.
Subjects: 
Current account
current account imbalances
financial account
euro
EU
European Monetary Union
monetary policy
fiscal policy
TARGET2
JEL: 
F33
F42
H62
F32
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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