DP9685 Patterns of convergence and Divergence in the Euro Area
| Author(s): | Ángel Estrada García, Jordi Galí, David Lopez-Salido |
| Publication Date: | October 2013 |
| Keyword(s): | competitiveness, current account imbalances, inflation differentials, labor markets, macroeconomic convergence, relative prices |
| JEL(s): | E24, F31, O47 |
| Programme Areas: | International Macroeconomics |
| Link to this Page: | cepr.org/active/publications/discussion_papers/dp.php?dpno=9685 |
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.