Patterns of Convergence and Divergence in the Euro Area

Abstract

We study the extent of macroeconomic convergence/divergence among euro area countries. Our analysis focuses on four variables (unemployment, inflation, relative prices and the current account), and seeks to uncover the role played by monetary union as a convergence factor by using non-euro developed economies and the pre-EMU period as control samples.
Published as: Patterns of Convergence and Divergence in the Euro Area in IMF Economic Review , Vol. 61, No. 4, 601--630, January, 2013