Can Portugal Escape Stagnation without Opting Out from the Eurozone?
The creation of the Economic and Monetary Union (EMU) has not brought significant gains to the Portuguese economy in terms of real convergence with wealthier eurozone countries. We analyze the causes of the underperformance of the Portuguese economy in the last decade, discuss its growth prospects within the EMU, and make two proposals for urgent institutional reform of the EMU. We argue that, under the prevailing institutional framework, Portugal faces a long period of stagnation, high unemployment, and painful structural reform, and conclude that, in the absence of institutional reform of the EMU, getting out of the eurozone represents a serious political option for Portugal.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- J.M.C. Santos Silva & Silvana Tenreyro, 2010.
"Currency Unions in Prospect and Retrospect,"
Annual Review of Economics,
Annual Reviews, vol. 2(1), pages 51-74, 09.
- J.M.C. Santos Silva & Silvana Tenreyro, 2010. "Currency unions in prospect and retrospect," LSE Research Online Documents on Economics 28738, London School of Economics and Political Science, LSE Library.
- J. M. C. Santos Silva & Silvana Tenreyro, 2010. "Currency Unions in Prospect and Retrospect," CEP Discussion Papers dp0986, Centre for Economic Performance, LSE.
- Santos Silva, J.M.C & Tenreyro, Silvana, 2010. "Currency Unions in Prospect and Retrospect," CEPR Discussion Papers 7824, C.E.P.R. Discussion Papers.
When requesting a correction, please mention this item's handle: RePEc:lev:wrkpap:wp_664. 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: (Marie-Celeste Edwards)
If references are entirely missing, you can add them using this form.