IMF paper examines eurozone current account imbalances

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A working paper published by the International Monetary Fund (IMF), on September 28, asks whether current account imbalances of eurozone countries can be attributed to external trade shocks, or if they are the result of an inside issue.

The authors, Ruo Chen, Gian-Maria Milesi-Ferretti and Thierry Tressel, find Chinese competition has damaged the eurozone's exports, particularly in several Southern European countries, while import demand in China "provided little benefits" to their trade

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