№268. In search of symmetry in the eurozone
№268. In search of symmetry in the eurozone

Author(s): Paul De Grauwe
Subject(s): National Economy, Economic policy, Government/Political systems, Comparative politics, Socio-Economic Research
Published by: CEPS Centre for European Policy Studies
Keywords: Eurozone; divergence of the competitive positions; Internal devaluation;
Summary/Abstract: One of the major problems of the eurozoneis the divergence of the competitive positions that have built up since the early 2000s. This divergence has led to major imbalances in the eurozone where the countries that have seen their competitive positions deteriorate (mainly the so-called ‘PIIGS’ –Portugal, Ireland, Italy, Greece and Spain) have accumulated large current account deficits and thus external indebtedness, matched by current account surpluses of the countries that have improved their competitive positions (mainly Germany).

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