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.