Georgieva Svrtinov, Vesna and Gorgieva-Trajkovska, Olivera and Temjanovski, Riste (2015) Sudden stops and current account reversals: the euro area experience. SEEU Review: The Journal of South East European University, 11 (2). ISSN 1857-8462
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Abstract
The paper analyzes the impact of massive capital flows and possible sudden stops on current account reversals. The aim of this paper is to consider the relationship between sudden stops and current account reversals in the eurozone and to explain the possibility of a balance-of-payment crisis within a monetary union.
Peripheral eurozone countries experienced significant private-capital inflows from the core countries, followed by unambiguously massive outflows. Due to this, peripheral countries ran sustained current account deficits while core countries ran surpluses.
At the end we analyze the evolution of current-account balances in the non-euro area EU countries and the peripheral euro-area countries, and we find out that current account deficits could be maintained over a longer period of time in the peripheral euro-area countries.
Keywords: capital flows; sudden stops; current account reversals; euro zone
| Item Type: | Article |
|---|---|
| Subjects: | Social Sciences > Economics and business |
| Divisions: | Faculty of Economics |
| Depositing User: | Olivera Trajkovska |
| Date Deposited: | 16 May 2017 12:23 |
| Last Modified: | 16 May 2017 12:23 |
| URI: | https://eprints.ugd.edu.mk/id/eprint/17795 |
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