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- W2792192458 abstract "Current estimates of misalignments in real effective exchange rates show that euro area imbalances are still large: Germany exhibits a 20 percentage point undervaluation compared to the rest of the euro area (EA). Within a monetary union, rebalancing requires price adjustments through differentials in inflation rates. The rebalancing process therefore involves a 2 percentage point higher inflation in Germany than in the rest of the EA over a decade, or a 1 pp over two decades. It also requires above 2% inflation in surplus countries to meet the 2% ECB inflation target. At the current pace, rebalancing is a 20 year process and requires sustained very low inflation rates in the rest of the euro area." @default.
- W2792192458 created "2018-03-29" @default.
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- W2792192458 date "2018-01-01" @default.
- W2792192458 modified "2023-09-27" @default.
- W2792192458 title "Some Unpleasant Euro Arithmetic" @default.
- W2792192458 hasPublicationYear "2018" @default.
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