monetary economics

Exercice 3 1. Define and calculate the current account balances of France and the European Union in Q1 2020 and Q2 2020. 2. Explain the evolution of the components of the French current account between Q1 and Q2 2020. 3. Explain the current account situation of the European Union, highlighting the differences between differences between the main countries. What can explain such differences? 4. Over the period 2006-2020, the current account in Europe has improved. What measures have been adopted by some countries? What are the negative effects negative effects on the real economy? 5. What are the implications of Europe's current account balance for the financial account and more generally for international capital movements? Current account of France In billions of euros June 2020 2020 Q1 2020 (a) (a) Q2 (a) Current account -8.4 1) Goods -8.2 -13.6 -20.8 Energy -2.0 -9.0 -5.3 Non-energy goods -6.1 -4.6 -15.5 Services 0.2 1.9 0.5 Travel Services 0.1 1.4 0.2 Transportation services -0.5 -0.5 -1.2 Consulting, R&D or trade-related services provided to 0.4 0.8 -0.3 companies. Miscellaneous services (2) 0.2 0.3 1.8 Primary and secondary revenues (3) -0.5 0.2 -1.9 European Union Q1 2020 European Union Q2 2020 Goods 83.5 48.9 Services -5.8 24.8 Primary Revenues -10.1 24.8 Secondary Revenues -14.7 -15.5 Reserve Assets -19.1 22.5 Financial account 45.8 -111.2 current account (billion euros) Balance of the current account Seasonally and calendar adjusted, as % of GDP UE = European Union Zone Euro = Euro Zone UE ec.europa eufeurostat 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Current account (in billions of euros and as a % of GDP) 2020 Q1 Amount % of GDP France -25.2 -1.1 Germany 245.4 7.1 Spain 25.6 2.1 Italy 55.5 3.1 United Kingdom -76.1 -3.0