Imbalances in the Euro Area
Abstract
In recent years, substantial current account imbalances and divergences of competitiveness emerged in the euro area. These disparities endanger the cyclical recovery and impair medium-term economic growth as well as the cohesion in the monetary union. The reduction of the imbalances will dampen economic growth in the euro area for several years to come. It could, however, occur in an environment of stronger growth, too, if productivity increased in the deficit countries and if Germany strengthened its domestic demand.Download Info
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Bibliographic Info
Article provided by WIFO in its journal Quarterly.
Volume (Year): 15 (2010)
Issue (Month): 3 (October)
Pages: 277-290
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Keywords: euro area; financial crisis; economic crisis; current account trends; demand trends;References
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