Bartelsman, E., di Mauro, F. & Dorrucci, E. (2015) “Eurozone rebalancing: Are we on the right track for growth? Insights from the CompNet micro-based data“, VoxEU Organisation, 17 Μαρτίου.
The shallow growth response to Eurozone rebalancing policies could point towards structural impediments. To uncover such impediments and design effective structural reforms, it is necessary to focus on the path from micro behaviour to macro outcomes. This column argues that firm-level data from the CompNet database can shed light on the impacts of structural reforms.
The macro rebalancing in the Eurozone
Price and, even more so, cost competitiveness has improved markedly since real effective exchange rates (REER) peaked in the Eurozone member states, mainly at some point in in 2008-09. Figure 1 shows, however, that the process of external adjustment has been associated with lower investment and, more generally, lower output growth in the stressed economies.
Σχετικές αναρτήσεις:
- Matthieu Bussière, Μ., Cheng, G., Chinn, D. M. & Lisack, N. (2015) “For a few dollars more: Reserves and growth in times of crises“, Journal of International Money and Finance, Vol. 52, Απρίλιος 2015, σελ. 127–145.
- Cottarelli, C. (2015) “Potential growth rates and the working of SGP fiscal rules“, VoxEU Organisation, 02 Μαρτίου.
- Enderlein, H. & Pisani-Ferry, J. (2014) “Reforms, Investment and Growth: An Agenda for France, Germany and Europe“, Report to Sigmar Gabriel (Federal Minister for Economic Affairs and Energy) and Emmanuel Macron (Minister for the Economy, Industry and Digital Affairs, 27 Νοεμβρίου.