Should Eurozone current-account surpluses be reduced?
Alexandr Hobza, Stefan Zeugner, 26 April 2013
Current-account deficits have caused problems in several Eurozone countries, but surpluses are also an issue. This column argues that surpluses are detrimental to the welfare of the population to the extent they are driven by structural weaknesses affecting demand. Addressing these issues through structural reforms, while letting wages and prices respond flexibly to market signals, would be welfare-enhancing for the surplus countries.
Full Article: Should Eurozone current-account surpluses be reduced?