The current problem of euro zone can be characterized as the internal distribution of saving and investment. The euro zone as a whole has sufficient saving to finance the investment. Although there is an excess of saving in northern Europe, savers in the north are unwilling to finance southern Europe due to the current crisis [1]. Although German has a current-account surplus, which is more than enough to cover the current account deficit of the rest of eurozone countries, there is no sign of convergence across regions [2].
展开▼
