EXTERNAL IMBALANCES, GROSS CAPITAL FLOWS, AND SOVEREIGN DEBT CRISES

• 成果类型: Article
• 署名作者: de Ferra, Sergio
• 署名单位: Stockholm University
• 刊物名称: JOURNAL OF THE EUROPEAN ECONOMIC ASSOCIATION
• ISSN/ISSBN: 1542-4766
• DOI: 10.1093/jeea/jvz079
• 发表日期: 2021
• 页码: 347-402
• 关键词: risk; PRODUCTIVITY; fluctuations; euro

摘要

The experience of the European monetary union has been characterized by current account imbalances, widening gross external positions, and a severe sovereign debt crisis. I argue that institutional features of the European Economic and Monetary Union have contributed to all three. I show in a model that subsidies on holdings of assets issued within the union contribute to current account imbalances, to gross capital flows, and to the severity of the crisis. In a quantitative model with heterogeneous countries, I show that the subsidies account for a substantial fraction of the widening of gross external positions in the euro area by inducing countries with high income and external assets to engage in intermediation of gross capital flows.