IMF: global imbalances matter to Europe
According to an IMF working paper published in June, although Europe in the aggregate is a not a major contributor to global current account imbalances, its trade and financial linkages with the rest of the world mean that it will still be affected by a shift in the current configuration of external deficits and surpluses.
The paper is authored by Philip Lane and Gian Maria Milesi-Ferretti, who "assess the macroeconomic impact on Europe of global current account adjustment under alternative
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