IMF Working Papers

European Financial Linkages: A New Look At Imbalances

December 1, 2010

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European Financial Linkages: A New Look At Imbalances, (USA: International Monetary Fund, 2010) accessed November 23, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

We document external investment positions among European Union countries at the start of the financial crisis through the creation of a new database comprising bilateral external financial asset and liabilities, excluding reserve assets and derivatives. While there are some gaps in the data, the overall coverage of reported bilateral net international investment positions (IIPs) appears satisfactory. The dataset provides a richer picture of financial linkages, enabling us to map the financing of Euro area imbalances. Creditor and debtor positions vis-à-vis the rest of the EU have tended to increase between 2000 and 2008, with capital flowing largely from wealthier to catching-up economies. This has in particular resulted in an increased interdependency among Euro Area economies.

Subject: Balance of payments, External position, Financial derivatives, Financial institutions, Foreign assets, Foreign currency exposure, Foreign direct investment, International investment position, Money

Keywords: Area country, Baltics, Creditor country, Current account imbalances, D. EU, EU assets, EU creditor country, Euro area, Euro area country, Financial derivatives, Financial integration, Foreign assets, Foreign currency exposure, Foreign direct investment, France, Germany, Global, International investment position, Intra-European Union, Luxemburg, Net foreign assets, UK picture, WP

Publication Details

  • Pages:

    60

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2010/295

  • Stock No:

    WPIEA2010295

  • ISBN:

    9781455211760

  • ISSN:

    1018-5941

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