| Author (Person) | Hafner, Kurt A., Jager, Jennifer |
|---|---|
| Series Title | Intereconomics |
| Series Details | Vol.48, No.5, September-October 2013, p315-322 |
| Publication Date | September 2013 |
| ISSN | 0020-5346 |
| Content Type | Journal | Series | Blog |
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The eurozone crisis has revealed certain shortcomings of the EMU, such as its vulnerability to asymmetric shocks and its inability to act as predicted by the theory of optimum currency areas. Although the share of intra-EU trade has increased since the introduction of the euro, dissimilarities in economic structure combined with high degrees of industrial specialisation have increased the EMU’s vulnerability to asymmetric shocks. Moreover, the lack of labour mobility or a transfer payment system limits the EMU’s crisis adjustment capabilities. However, most of the implemented and proposed stabilisation measures seek to remedy this vulnerability by promoting economic integration, further fiscal discipline and debt redemption. [Full text of articles can be found in the Intereconomics Archive two years after the initial publication] |
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| Subject Categories | Economic and Financial Affairs |
| Countries / Regions | Europe |
