Publication
May 2012
The analysis provides strong evidence showing that the burden of the adjustments to the imbalances in the eurozone between the surplus and the deficit countries is borne almost exclusively by the deficit countries in the periphery. And although the European Commission has now been invested with an important responsibility of monitoring and correcting macroeconomic imbalances in the framework of the Macroeconomic Imbalance Procedure (MIP), the author finds that up to now it imposes a lot of pressure on the deficit countries but fails to impose a similar pressure on the surplus countries, with the effect that the eurozone is being kept in a deflationary straightjacket.
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English (PDF, 5 pages, 559 KB) |
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Author | Paul De Grauwe |
Series | CEPS Policy Briefs |
Issue | 268 |
Publisher | Centre for European Policy Studies (CEPS) |
Copyright | © 2012 Centre for European Policy Studies (CEPS) |