Template-Type: ReDIF-Article 1.0

Author-Name: Eszter Boros
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: borosesz@mnb.hu

Title: Endogenous Imbalances in a Single Currency
Area

Abstract: This paper aims to identify the risks and real economic drivers of crises inherent in
the monetary union over and above the current institutional challenges, seeking
an answer to what fundamentally drives possible economic disturbances and what
may impede the self-correction of markets. After analysing the available data, the
author concludes that the euro area’s real economic homogeneity and market
adjustment performance exhibit a mixed picture. The centre-periphery fault line
may both give rise to and preserve imbalances. The author concludes that to prevent
this and to reap the expected benefits of the euro, a comprehensive and targeted
competitiveness, structural and regional policy framework is called for.

Classification-JEL: E42, E52, F33, F36, F45
Keywords: single currency area, optimum currency areas, imbalances, euro area
adjustment
Pages: 86–118
Volume: 16
Issue: 2
Year: 2017
File-URL: http://english.hitelintezetiszemle.hu/letoltes/endogenous-imbalances-eszter-boros.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:16:y:2017:i:2:p:86-118