Title: EMU: the last stand for the policy convergence hypothesis?
Abstract: This paper explores the extent of euro area policy convergence during the third stage of EMU. The policy convergence hypothesis from international political economy posits that euro zone national economies should become more similar over time in terms of economic growth, employment and inflation outcomes as a result of using a common currency and taking the same regional monetary policy. Yet the descriptive data show little evidence of euro area policy convergence post-1999. One possible explanation for the lack of macroeconomic convergence within the euro zone is advanced (fiscal policy divergence), and the implications of policy divergence for the long-term viability of EMU are discussed.
Publication Year: 2009
Publication Date: 2009-06-01
Language: en
Type: article
Indexed In: ['crossref']
Access and Citation
Cited By Count: 12
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot