Endogenous Imbalances in a Single Currency Area

Eszter Boros ()
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Eszter Boros: Magyar Nemzeti Bank

Financial and Economic Review, 2017, vol. 16, issue 2, 86–118

Abstract: This paper aims to identify the risks and real economic drivers of crises inherent in the monetary union over and above the current institutional challenges, seeking an answer to what fundamentally drives possible economic disturbances and what may impede the self-correction of markets. After analysing the available data, the author concludes that the euro area’s real economic homogeneity and market adjustment performance exhibit a mixed picture. The centre-periphery fault line may both give rise to and preserve imbalances. The author concludes that to prevent this and to reap the expected benefits of the euro, a comprehensive and targeted competitiveness, structural and regional policy framework is called for.

Keywords: single currency area; optimum currency areas; imbalances; euro area adjustment (search for similar items in EconPapers)
JEL-codes: E42 E52 F33 F36 F45 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:mnb:finrev:v:16:y:2017:i:2:p:86-118

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