Raphael Auer is, on Voxeu, surprised about the rapid decline of the current account deficits of the periphery countries of the Eurozone (see also here and here). But he is wrong about the reasons for this decline. The ‘rebalancing’ is mainly caused by a very deep economic slump – and not so much by an increase of productivity.Real-World Economics Review Blog
The real cause of the rapid ‘rebalancing’ of the periphery current accounts
Merijn Knibbe
