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Imbalances in the Euro Area

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  • Stefan Ederer

Abstract

In recent years, substantial current account imbalances and divergences of competitiveness emerged in the euro area. These disparities endanger the cyclical recovery and impair medium-term economic growth as well as the cohesion in the monetary union. The reduction of the imbalances will dampen economic growth in the euro area for several years to come. It could, however, occur in an environment of stronger growth, too, if productivity increased in the deficit countries and if Germany strengthened its domestic demand.

Suggested Citation

  • Stefan Ederer, 2010. "Imbalances in the Euro Area," Austrian Economic Quarterly, WIFO, vol. 15(3), pages 277-290, October.
    • Handle: RePEc:wfo:wquart:y:2010:i:3:p:277-290
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    References listed on IDEAS

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    1. Markus Marterbauer, 2010. "Budgetpolitik im Zeitalter verminderter Erwartungen," WIFO Working Papers 366, WIFO.
    2. Markus Marterbauer & Ewald Walterskirchen, 2005. "Einfluss der Haus- und Wohnungspreise auf das Wirtschaftswachstum," WIFO Monatsberichte (monthly reports), WIFO, vol. 78(11), pages 761-774, November.
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    Cited by:

    1. Nina Dodig & Hansjörg Herr, 2015. "Current Account Imbalances in the EMU: An Assessment of Official Policy Responses," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 62(2), pages 193-216, June.
    2. Stefan Ederer, 2015. "Macroeconomic Imbalances and Institutional Reforms in the EMU. WWWforEurope Working Paper No. 87," WIFO Studies, WIFO, number 57896.
    3. Stefan Ederer & Peter Reschenhofer, 2013. "Macroeconomic Imbalances in the EU. WWWforEurope Working Paper No. 42," WIFO Studies, WIFO, number 47017.
    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.

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