Ten Years of Emu: Convergence, Divergence and New Policy Priorities

Christodoulakis, Nikos

doi:10.1177/0027950109338653

Cited by 41 publications

(13 citation statements)

References 24 publications

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“…Since the year 2008, the ratios for the second and the third quintiles (which include the crisis countries Spain, Italy, Portugal, Cyprus and Greece) are declining, thereby indicating increasing economic heterogeneity. This is in line with the notion that since the start of the crisis the divergence of income levels has re-emerged again (Christodoulakis 2009). In contrast, the central and eastern European EMU member states as represented by the lowest income quintile are converging again.…”

supporting

confidence: 89%

Regional heterogeneity, the rise of public debt and monetary policy in post-bubble Japan: lessons for the EMU

Fischer

Schnabl

2017

Int Econ Econ Policy

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Both Japan and parts of the European Monetary Union have experienced boom and bust in stock and real estate markets, which have been followed by a lasting crisis. The paper analyses the role of a high degree of regional heterogeneity for public debt and monetary policy in the context of crisis. It is shown for Japan that the attempts to maintain regional cohesion via a regional transfer mechanism has contributed to the unprecedented rise in public debt and persistent monetary expansion. Econometric estimations show that in Japan regional redistribution of funds has ensured homogeneous living conditions across Japanese regions preand post-crisis. The side condition is monetary expansion. A similar effect could emerge in Europe, if the crisis persists. Terms of use: Documents inJEL-Codes: H120, H770, E520.

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supporting

confidence: 89%

Regional heterogeneity, the rise of public debt and monetary policy in post-bubble Japan: lessons for the EMU

Fischer

Schnabl

2017

Int Econ Econ Policy

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“…The other is the so-called σ-convergence, which measures the decline in dispersion of GDP per capita among fellow member-countries. In a study for the initial 12-member group of the Euro Area (henceforth EA12), Christodoulakis (2009) employed both convergence indicators to show that the gap had in fact widened, albeit to an extent that at that time seemed to be reversible if certain policies were implemented.…”

Section: Region and Periphery [11]mentioning

confidence: 99%

Aspects of divergence in the Euro Area

Christodoulakis¹

2020

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The paper examines how the convergence process between the less and the more developed members of the Euro Area weakened significantly after the circulation of the common currency, and subsequently reversed course in the postcrisis recession. The front-loaded consolidation programs that followed the bailouts in the over-indebted economies caused asymmetric losses in per capita income in the peripheral countries and led to further North-South polarization. The paper identifies public indebtedness, quality of institutions and capital formation as the areas where divergences are more pronounced and suggests that policy initiatives to encourage more investment and a faster institutional assimilation are needed for the convergence process in the Euro Area to take off again.

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“…Reality, however, has shown that competitiveness has fallen in some of the less prepared members, now that devaluation is no longer an option. As suggested by Christodoulakis (2009), the access to cheaper capital provided by EMU membership has aggravated pre‐existing current account deficits in peripheral countries. Unlike the core EMU members, the periphery has attracted relatively more investment in the non‐tradable sector (the housing boom being a good example), which resulted in a progressive deterioration of the trade balance.…”

Section: The Oca Index and The Fiscal And External Imbalancesmentioning

confidence: 99%

Assessing the Endogeneity of Oca Conditions in Emu*

Vieira

2012

The Manchester School

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Abstract:The academic and political discussion about which countries met the conditions for joining EMU was decisively influenced by the Frankel and Rose (1997) hypothesis concerning endogenous OCA properties. The answer to their question "Is EMU more justifiable ex post than ex ante?" was a definite yes in their ex ante analysis. Our ex post examination of the euro's first decade, however suggests that the hypothesis does not hold for some countries. This paper utilizes panel data estimation techniques to compute OCA indices that help assess the OCA endogeneity hypothesis and signal current external and fiscal imbalances.

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Ten Years of Emu: Convergence, Divergence and New Policy Priorities

Cited by 41 publications

References 24 publications

Regional heterogeneity, the rise of public debt and monetary policy in post-bubble Japan: lessons for the EMU

Regional heterogeneity, the rise of public debt and monetary policy in post-bubble Japan: lessons for the EMU

Aspects of divergence in the Euro Area

Assessing the Endogeneity of Oca Conditions in Emu*

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