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Imbalances in the Euro Area

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  • Stefan Ederer

    (WIFO)

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    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.

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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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    Handle: RePEc:wfo:wquart:y:2010:i:3:p:277-290

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    Keywords: euro area; financial crisis; economic crisis; current account trends; demand trends;

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    1. Markus Marterbauer, 2010. "Budgetpolitik im Zeitalter verminderter Erwartungen," IMK Working Paper, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute 6-2010, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
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