Macroeconomic Policy Making and Current Account Imbalances in the Euro Area

Gunther Schnabl and Taiki Murai analyse the role of fiscal and monetary policy for the development of the current account imbalances in the euro area, including the most recent developments during the coronavirus crisis. Since the European financial and debt crisis, public financing mechanisms and the unconventional monetary of the ECB have contributed to the persistence of intra-euro area current account imbalances.