Current Account Imbalances and the Crisis in the Euro Area

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Isidro Frías Pinedo
Universidade de Santiago de Compostela
Spain
Rosario Díaz Vázquez
Universidade de Santiago de Compostela
Spain
Ana Iglesias Casal
Universidade de Santiago de Compostela
Spain
Vol 21 (2012): Crisis in the Eurozone, Articles
DOI: https://doi.org/10.15304/rge.21.Extra.427
Submitted: 10-10-2012 Accepted: 10-10-2012
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Abstract

in the Euro area and its relation with the economic crisis, addressing specifically thecase of Spain. Estimation of foreign trade equations for Spain shows that a sustainable situationfor trade imbalances could have been reached in two ways. Firstly, through an agreed actuationimplemented in order to rise aggregated demand in central states over that in countries in theperiphery. Secondly, controlling the pro cyclical movements promoted by monetary and creditvariables.

Keywords:

Current account imbalances, Imbalances in the Euro Area, European Monetary Union, Foreign trade in Spain, VEC models, Foreign trade equations estimation
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References

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