Publication

This paper examines the reasons for the correction of negative imbalances in the current accounts of the majority of peripheral member states in the euro area since the global financial crisis of 2008 and what this means for the future of the EU economy. The authors argue that these corrections were mainly due to a recession-driven decrease in imports, monetary wage compression, and below-average rates of inflation meaning the economic problems that caused the imbalances have not been addressed. They also provide recommendations on what policies the EU can adopt to tackle the economic problems in the eurozone.