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This chapter argues that the key Eurozone imbalances are not a failure of nation states. At the heart of the … integration process is the convergence criteria – limits on government deficit, debt, interest rate, inflation, etc. While these … this difference is an important determinant of the key macroeconomic imbalances across the Eurozone. It follows that the …
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According to the conventional wisdom, "peripheral" Southern European countries members of the euro area (Greece, Italy, Portugal, and Spain) suffer from a problem of competitiveness. Since devaluation is not possible because they are part of the euro, the adjustment should come through...
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According to conventional wisdom, “peripheral” Southern European members of the euro area (Greece, Italy, Portugal and Spain) suffer from a problem of competitiveness. Since their membership of the euro area renders devaluation impossible, adjustment should come through decreasing wages and...
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