Assessing the sustainability of external imbalances in the European Union

Afonso, António; Huart, Florence; Jalles, João Tovar; Stanek, Piotr

http://hdl.handle.net/10400.5/25508

Use this identifier to reference this record.

Name:	Description:	Size:	Format:
2018 - Afonso et al.- Assessing the sustainability of external imbalances in the European Union.pdf		928.94 KB	Adobe PDF	Download

Send Feedback

Authors

Abstract(s)

External imbalances are a greater source of concern than public deficits and debts in some countries of the European Union, given their size and evolution. The new macroeconomic imbalance procedure (MIP), which aims at preventing these imbalances, relies on the surveillance of macroeconomic indicators. Some thresholds have been defined for the current account balance and the net international investment position (NIIP), but not for the NED which is taken as an auxiliary indicator in the MIP scoreboard. Prompted by these thresholds, we carried out an analysis of external debt sustainability of EU countries.

Keywords

Cointegration Current Account Error Correction Exports Imports Net Foreign Assets Structural Breaks Unit Roots

URI

http://hdl.handle.net/10400.5/25508

Citation

Afonso, António … [et al.]. (2019)."Assessing the sustainability of external imbalances in the European Union" .The World Economy, Vol. 42, No.2: pp. 320-348.