Francesco Lippi's picture
Università di Sassari
Professor of Economics

Voting history

German current account surpluses


Question 1: Do you agree that German current account surpluses are a threat to the Eurozone economy?


Confidence level:
I do not see why the savings of my neighbor should be a problem for me. Rather, they are a potential source of financing my investment . I do not know a single reasonable model where CA surpluses are a problem. The fact that one needs to resort to 70 year old theories, where prices and policies are exogenous , is a tell tale of how the the arguments are. But, since politics attaches a bad meaning to such budget surpluses, I do think it will be possible that such surpluses will become a political problem that might eventually threaten the monetary union.