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Growth and Economic Policy: Are There Speed Limits to Real Convergence?

In: Real Convergence in Central, Eastern and South-Eastern Europe

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  • István P. Székely
  • Max Watson

Abstract

The concept of speed limits to real convergence can be interpreted in two different ways. It can mean factors that limit or enhance potential growth in the recently acceded EU member states (RAMS) — in other words, speed limits to the potential pace of real convergence. But it can also mean factors that limit adjustment capacity and/or create market imperfections and rigidities, that is, speed limits due to vulnerabilities. Both are important and will be dealt with in this chapter.

Suggested Citation

  • István P. Székely & Max Watson, 2009. "Growth and Economic Policy: Are There Speed Limits to Real Convergence?," Palgrave Macmillan Books, in: Reiner Martin & Adalbert Winkler (ed.), Real Convergence in Central, Eastern and South-Eastern Europe, chapter 5, pages 98-123, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-23543-4_6
    DOI: 10.1057/9780230235434_6
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    Cited by:

    1. Darvas, Zsolt & Szapáry, György, 2008. "Az euróövezet bővítése és euróbevezetési stratégiák [Euro-area enlargement and euro adoption strategies]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(10), pages 833-873.
    2. Klaus Regling & Servaas Deroose & Reinhard Felke & Paul Kutos, 2010. "The Euro After Its First Decade : Weathering the Financial Storm and Enlarging the Euro Area," Governance Working Papers 22817, East Asian Bureau of Economic Research.
    3. Ram Upendra Das, 2010. "Imperatives of Regional Economic Integration in Asia in the Context of Developmental Asymmetries: Some Policy Suggestions," Working Papers id:3037, eSocialSciences.
    4. Klaus Regling & Max Watson, 2008. "Financial Markets in the Euro Area: Realising the Full Benefits of Integration," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 2(1), pages 11-24, June.
    5. Regling, Klaus & Deroose, Servaas & Felke, Reinhard & Kutos, Paul, 2010. "The Euro After Its First Decade: Weathering the Financial Storm and Enlarging the Euro Area," ADBI Working Papers 205, Asian Development Bank Institute.

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