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.