Current account imbalances and structural adjustment in the Euro area : how to rebalance competitiveness

Arbeitspapier

Low international competitiveness of a set of euro area countries, which have become evident by large current account deficits and rising risk premiums on government bonds, is one of the most challenging economic policy issues for Europe. We analyse the role of private restructuring and public structural reforms for the urgently needed readjustment of intra-euro area imbalances. A panel regression reveals a significant impact of private restructuring and public structural reforms on intra-euro area competitiveness. This implies that private restructuring and public reforms are rather than public transfers the best way to preserve long-term economic stability in Europe.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 2639

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Economic Integration ; Trade and Labor Market Interactions ; Current Account Adjustment; Short-term Capital Movements ; International Monetary Arrangements and Institutions
• Subject: structural reforms ; international competitiveness ; current account imbalances ; European Monetary Union ; euro area ; dynamic panel estimation ; interaction term ; Zahlungsbilanzungleichgewicht ; Europäische Wirtschafts- und Währungsunion ; Internationaler Wettbewerb ; Wirtschaftsreform ; Sozialreform ; Wirtschaftliche Anpassung ; EU-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Zemanek, Holger ; Belke, Ansgar ; Schnabl, Gunther
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/30517
• Last update: 10.03.2025, 11:45 AM CET