Current Account Imbalances in the Euro Area. I focus on “flow” imbalances. See Lane and Milesi-Ferretti (2018) on the evolution of net international investment positions.
Today, following the significant weakening in the global economy that began last fall, concerns have shifted to more-traditional credit risks, including rising delinquencies on prime as well as subprime mortgages, unpaid credit card and auto loans, worsening conditions in commercial real estate markets, and increased rates of corporate bankruptcy.