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Macroeconomic Imbalances in the EU. WWWforEurope Working Paper No. 42

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  • Stefan Ederer
  • Peter Reschenhofer

Abstract

This paper aims to identify different growth patterns in the EU which led to the emergence of macroeconomic imbalances. It provides a detailed statistical picture of the evolution of various macroeconomic variables on the demand as well as on the supply side, before, in and after the financial and economic crisis of 2008-09. It investigates the causes and discusses various "channels" which led to macroeconomic imbalances by means of a descriptive analysis of the key determinants of macroeconomic developments, such as wage and price developments, productivity growth, etc. Special emphasis is given to developments of the share of labour in national income, the real interest rate and the real exchange rate. The analysis of this data set provides a comprehensive picture of the underlying causes for the specific growth patterns as well as a first assessment of their role in the development of macroeconomic imbalances within the EU. It derives tentative conclusions as to how macroeconomic imbalances can arise in a monetary union and how they can be addressed properly by economic policy.

Suggested Citation

  • Stefan Ederer & Peter Reschenhofer, 2013. "Macroeconomic Imbalances in the EU. WWWforEurope Working Paper No. 42," WIFO Studies, WIFO, number 47017, April.
    • Handle: RePEc:wfo:wstudy:47017
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    References listed on IDEAS

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    Cited by:

    1. Karl Aiginger, 2016. "New Dynamics for Europe: Reaping the Benefits of Socio-ecological Transition – Part I: Synthesis. WWWforEurope Deliverable No. 11," WIFO Studies, WIFO, number 58791, February.
    2. Dodig, Nina & Herr, Hansjörg, 2015. "EU policies addressing current account imbalances in the EMU: An assessment," IPE Working Papers 46/2015, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    3. Ederer, Stefan & Reschenhofer, Peter, 2018. "Macroeconomic imbalances and structural change in the EMU," Structural Change and Economic Dynamics, Elsevier, vol. 46(C), pages 59-69.
    4. Stefan Ederer & Stefan Weingärtner, 2013. "Remapping EMU. On the Future Construction of Economic and Monetary Union. WWWforEurope Policy Paper No. 5," WIFO Studies, WIFO, number 47009, February.
    5. Stefan Ederer & Peter Reschenhofer, 2014. "Macroeconomic Imbalances and Structural Change in the EMU. WWWforEurope Working Paper No. 69," WIFO Studies, WIFO, number 47506, April.
    6. Stefan Ederer, 2015. "Macroeconomic Imbalances and Institutional Reforms in the EMU. WWWforEurope Working Paper No. 87," WIFO Studies, WIFO, number 57896, April.
    7. Stefan Ederer & Josef Baumgartner & Jürgen Bierbaumer-Polly & Serguei Kaniovski & Silvia Rocha-Akis & Gerhard Streicher, 2016. "Österreich 2025 – Privater Konsum und öffentliche Investitionen in Österreich," WIFO Studies, WIFO, number 59037, February.
    8. Stefan Ederer & Peter Reschenhofer, 2016. "Growth Patterns and Trade Imbalances in the EMU. A Global Value Chain Analysis," WIFO Working Papers 509, WIFO.
    9. Stefan Ederer & Peter Reschenhofer, 2014. "A Global Value Chain Analysis of Macroeconomic Imbalances in Europe. WWWforEurope Working Paper No. 67," WIFO Studies, WIFO, number 47500, February.
    10. Harald Oberhofer & Christian Glocker & Werner Hölzl & Peter Huber & Serguei Kaniovski & Klaus Nowotny & Michael Pfaffermayr & Monique Ebell & Nikolaos Kontogiannis, 2016. "Single Market Transmission Mechanisms Before, During and After the 2008-09 Crisis. A Quantitative Assessment," WIFO Studies, WIFO, number 59156, February.

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