Can Portugal escape stagnation without opting out from the Eurozone?

Arbeitspapier

The creation of the Economic and Monetary Union (EMU) has not brought significant gains to the Portuguese economy in terms of real convergence with wealthier eurozone countries. We analyze the causes of the underperformance of the Portuguese economy in the last decade, discuss its growth prospects within the EMU, and make two proposals for urgent institutional reform of the EMU. We argue that, under the prevailing institutional framework, Portugal faces a long period of stagnation, high unemployment, and painful structural reform, and conclude that, in the absence of institutional reform of the EMU, getting out of the eurozone represents a serious political option for Portugal.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 664

Classification and Topics

• Classification: Wirtschaft ; Business Fluctuations; Cycles ; Studies of Particular Policy Episodes ; Current Account Adjustment; Short-term Capital Movements ; Open Economy Macroeconomics ; Labor-Management Relations, Trade Unions, and Collective Bargaining: General
• Subject: nominal wage cuts ; Eurozone ; relative unit labor costs ; zero-sum game

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Leao, Pedro ; Palacio-Vera, Alfonso
• Event: Veröffentlichung
• (who): Levy Economics Institute of Bard College
• (where): Annandale-on-Hudson, NY
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/57021
• Last update: 10.03.2025, 11:46 AM CET