EURO AREA IN THE CONDITIONS OF GLOBAL IMBALANCE

Abstract

The world economy has been tormented by global imbalance for some time. One of its manifestations is the current crisis. The global imbalance has noticeably affected the development of advanced countries in the world. The main intention of this paper is to review the status of the euro area in the global economy in terms of the global imbalance through the analysis of the development of the current account of the balance of payments, the terms of trade, as well as through the relationship between savings and investments. Furthermore, this paper aims to identify the potential risks of this development in the future, which might impede the return to equilibrium in the global economy

Keywords

• Global imbalance, current account of the balance of payments, terms of trade, savings, investments, eurozone