Adjustment in the Economic and Monetary Union
This event will look at shocks and adjustment in the euro area in the light of recent crises and analyse the functioning of a key internal adjustment process in EMU
The global and sovereign debt crises have shown that the effect on individual economies of a common economic shock can be very different across the euro area. At this event José Leandro, from the European Commission, DG ECFIN presented a special edition of the Quarterly Report on the Euro Area.
The report reviews the issue of shocks and market-based adjustment in the light of recent crises focusing on three key dimensions: the relative price mechanism, the real interest rate mechanism and the role of debt in adjustment processes.
Overall, the analysis shows that market-based adjustment has been at work in the euro area since the crisis but has been slow and asymmetric. Appropriate policies in labour, product and financial markets, together with a complete Banking Union and Capital Markets Union are critical to improve Member States’ adjustment capacity.
The presentation of the report was be followed by comments by Antoine Berthou and Robert Anderton.
José Leandro, Director, Policy, Strategy and Coordination, European Commission, DG ECFIN
Deputy Head of Country Surveillance Division, DG-Economics, European Central Bank
Economist, Banque de France
Director, Policy, Strategy and Coordination, European Commission, DG ECFIN
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