Macroeconomic Imbalances in the Euro Area
Macroeconomic Imbalances in the Euro Area

Summary/Abstract: Macroeconomic imbalances constitute one of the most importantthreats to the cohesion of the monetary union. The aim of this articleis to examine the current state of imbalances using the new compositeindicator of macroeconomic stability. The calculated compositeindicators of macroeconomic stability allow for the formulation of thefollowing interpretations regarding changes and the current level of macroeconomic imbalances in the Euro area: 1. The aggregate pressurefrom macroeconomic imbalances in the Euro area is currently the lowestin the whole period for which data is available; 2. The imbalances in theEuro area have been partially limited, but more precisely, it should be saidthat they have changed their face rather than disappeared; 3. A signifi cantreduction of imbalances occurred in the case of variables which, in themajority of interpretations, were directly blamed for the exacerbation ofthe post-2008 crisis phenomena: current account balance, unit labour costs,or credit growth. At the same time, imbalances in terms of internationalnet investment position and public and private debt, as well as imbalancesin the labour market, have significantly increased.

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