Work detail

Global Imbalances Reflected in the Eurozone's Accounting

Author: Bc. Petr Pleticha
Year: 2015 - summer
Leaders: doc. Petr Janský Ph.D.
Work type: Bachelors
Language: English
Pages: 50
Awards and prizes:
Abstract: In this study I investigate the discrepancies between net investment income and development of net
international investment position of the Eurozone. To examine these discrepancies, I use the concept of
dark matter which enables quantification of such discrepancies. This study has two goals: to present an
alternative view on the development of net international investment position in the Eurozone, and to test
validity of the dark matter concept by inspecting its interaction with main economic driving forces such
as exchange rate or energy prices. Previous research was mainly focused on the United States and did
not study dark matter in broader economic context. To date, no systematic analysis has considered the
origins of dark matter behavior. The results indeed present the stocks of dark matter behaving in
predictable manner, although, contrary to my expectations, they seem not to be connected with exchange
rate. The Eurozone’s international investment position adjusted for the stocks of dark matter looks also
more optimistically, pushing the concerns about global imbalances aside.




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