Current Account Imbalances and Structural Adjustment in the Euro Area: How to Rebalance Competitiveness

Holger Zemanek, Ansgar Belke and Gunther Schnabl

No 2639, CESifo Working Paper Series from CESifo

Abstract: Low international competitiveness of a set of euro area countries, which have become evident by large current account deficits and rising risk premiums on government bonds, is one of the most challenging economic policy issues for Europe. We analyse the role of private restructuring and public structural reforms for the urgently needed readjustment of intra-euro area imbalances. A panel regression reveals a significant impact of private restructuring and public structural reforms on intra-euro area competitiveness. This implies that private restructuring and public reforms are rather than public transfers the best way to preserve long-term economic stability in Europe.

Keywords: structural reforms; international competitiveness; current account imbalances; European Monetary Union; euro area; dynamic panel estimation; interaction term (search for similar items in EconPapers)
JEL-codes: E24 F15 F16 F32 F33 (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (39)

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp2639.pdf (application/pdf)

Related works:
Working Paper: Current Account Imbalances and Structural Adjustment in the Euro Area: How to Rebalance Competitiveness (2009)
Working Paper: Current Account Imbalances and Structural Adjustment in the Euro Area: How to Rebalance Competitiveness (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_2639

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().