IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

The Strange Case of the Attack on the Euro Area: Who Is To Blame?

Listed author(s):
  • Afonso, Óscar
  • Henrique Alves, Rui

In recent months, the euro area has been under fire from the financial markets, speculators being blamed for the mounting of a kind of conspiracy whose ultimate goal would be the disintegration of the project's Economic and Monetary Union (EMU). In this paper, we discuss the true reasons of this situation with reference to four issues which the debate remains open since the early 90s: nominal convergence versus real convergence; need –or not– for the coordination of fiscal policies; adjustment mechanisms to specific shocks and the theory of optimum currency areas; and need –or not– for further progress in political integration. Using data on the Portuguese case, we argue that, on several of these topics, the present framework of the EMU still reveals many weaknesses, which would underpin the current unstable situation. In this context, we present some suggestions for strengthening the euro area, particularly in terms of its economic governance.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Article provided by University of Santiago de Compostela. Faculty of Economics and Business. in its journal Revista Galega de Economía.

Volume (Year): 21 (2012)
Issue (Month): ex ()

in new window

Handle: RePEc:sdo:regaec:v:21:y:2012:i:ex_5
Contact details of provider: Postal:
Avda Xoan XXIII S/N, 15704 Santiago de Compostela

Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:sdo:regaec:v:21:y:2012:i:ex_5. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ana Iglesias Casal)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.