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Patterns of convergence and Divergence in the Euro Area

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  • Galí, Jordi
  • Estrada García, à ngel
  • ,

Abstract

We study the extent of macroeconomic convergence/divergence among euro area countries. Our analysis focuses on four variables (unemployment, inflation, relative prices and the current account), and seeks to uncover the role played by monetary union as a convergence factor by using non-euro developed economies and the pre-EMU period as control samples.

Suggested Citation

  • Galí, Jordi & Estrada García, à ngel & ,, 2013. "Patterns of convergence and Divergence in the Euro Area," CEPR Discussion Papers 9685, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:9685
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    More about this item

    Keywords

    Competitiveness; Current account imbalances; Inflation differentials; Labor markets; Macroeconomic convergence; Relative prices;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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