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Understanding the Euro Area Current Account

Author

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  • Galstyan, Vahagn

    (Central Bank of Ireland)

Abstract

Adopting a savings-investment approach to the current account, I link the euro area current account to a set of factors that have been identified as reliable covariates in the literature. The results suggest that corporate net lending and the fiscal balance are important covariates of the euro area current account. On the other hand, while demographic factors also matter, their relevance is of second order.

Suggested Citation

  • Galstyan, Vahagn, 2019. "Understanding the Euro Area Current Account," Economic Letters 7/EL/19, Central Bank of Ireland.
  • Handle: RePEc:cbi:ecolet:7/el/19
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    File URL: https://www.centralbank.ie/docs/default-source/publications/economic-letters/vol-2019-no-7-understanding-the-euro-area-current-account-(galstyan).pdf?sfvrsn=8
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    References listed on IDEAS

    as
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    Cited by:

    1. Galstyan, Vahagn, 2019. "Inflation and the Current Account in the Euro Area," Economic Letters 4/EL/19, Central Bank of Ireland.
    2. Galstyan, Vahagn, 2019. "Factor Income and the Euro Area Current Account," Economic Letters 8/EL/19, Central Bank of Ireland.

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