Current accounts and financial flows in the euro area
Alexandr Hobza and Stefan Zeugner
Web appendix and data for
Hobza and Zeugner (2014): Current accounts and financial flows in the euro area, Journal of International Money and Finance
We construct a new database of bilateral financial flows among euro area countries and their major world partners and explore the role of financial links in the accumulation and then adjustment of current account imbalances in the euro area. The data show that the geography of financial flows can differ quite markedly from trade flow patterns and suggest that the nexus between surpluses in the 'core' with deficits in the periphery went along financial rather than trade interlinkages. In particular, the data document the dominant role of 'core' countries in financing the euro area periphery's current account deficits before the financial crisis, both directly and through intermediating financial flows from outside of the euro area. Most of this financing took the form of debt instruments. Following the withdrawal of private financing from 'core' countries during the crisis, the ECB-mediated funding and other official flows helped the periphery to refinance its liabilities and smoothen the external adjustment.
The Web Appendix describes the various challenges in building the database.
- Financial flows: The file financial_flows.csv holds the estimated bilateral financial account, i.e. gross financial flows from a reporting country to a partner country (i.e. the gross financial asset acquisition of the reporting country in the partner country). It holds data for 62 countries (see web appendix for a description), as well as several flows by asset type (see below).
- Financial stocks: The file financial_stocks.csv holds the estimated bilateral IIP, i.e. the gross financial assets held by a reporting country in a partner country (in other words the gross financial liabilities of the partner country towards the reporting country). It holds data for 85 countries (see web appendix for a description), as well as several stocks by asset type (see below).
|PIDEBT||Portfolio debt (not disclosed for stocks)|
|SMP_ECB||ECB Securities market programme (part of PIDEBT)|
|OTHINV||Other investment (not disclosed for stocks)|
|TARGET_ECB||TARGET2 flows (part of OTHINV)|
|PROGRAMME||euro area bailout flows (part (of OTHINV)|
|EQUITY||FDI + PIEQUITY|
|OFFICIAL||TARGET_ECB+SMP_ECB+PROGRAMME (part of DEBT)|
|VALUE||FDI + PIEQUITY + PIDEBT + OTHINV|
The web appendix falls under the standard license of the Journal of International Money and Finance.
The financial flow data published on this website falls under the Creative Commons ShareAlike 4.0 International license. (I.e. you may share and adapt the data, under the following conditions: that you give appropriate credit, indicate if changes were made, and release remixes of the data under the same license).
|IM||Isle Of Man|
|UK_CARIB||British West Indies|
|INTO_CB||Non-Euro Central Banks and Int'l Org|
|ROW||Rest of World (Ex OECD-EU-Offshore-HK/SG/INTO_CB)|
|EA17||Euro Area (17)|
|EU27||European Union (27)|
|EU27_NONEA||Non-Euro EU (10)|
|SAMPLE_NON_EU27||OECD not in EU, Offshore, HK/SG/HR/INTO_CB|
|ROW_NON_EU27||Non-EU Countries (incl. ROW)|
Other non-reporters (only for stocks)
|TW||Taiwan, Province Of China|
|VE||Venezuela, Bolivarian Republic Of|
|AE||United Arab Emirates|