Economics at your fingertips  

External and macroeconomic adjustment in Spain and Germany

Elena Angelini and Michele Ca' Zorzi

Research Bulletin, 2014, vol. 20, 9-12

Abstract: The balanced current account in the euro area has disguised sizeable imbalances at the country level. The policy debate has concentrated on whether demand in surplus countries should be strengthened or wage growth in deficit countries should be dampened. Using a multi-country model, we evaluate both alternatives. Improvements in wage competitiveness preserve external stability, but have only mildly expansionary effects. JEL Classification: C5, F32, F41, O52

Keywords: net lending; euro area countries; current account; modeling (search for similar items in EconPapers)
Date: 2014-01
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Research Bulletin from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().

Page updated 2023-06-15
Handle: RePEc:ecb:ecbrbu:2014:0020:3