Eckhard Hein, FESSUD WP3 leader, presented the FESSUD working paper #68 entitled “Coping with imbalances in the Euro area: Policy alternatives addressing divergences and disparities between member countries” at the conference “Europe in Crisis: Challenges and Scenarios for Cohesion” (EU-CSC), which took place on 13 and 14 February 2015 at the University of Applied Sciences bfi Vienna.
The findings of the conference, including the paper by Eckhard Hein and Daniel Detzer, have now been published in a special edition of the peer-reviewed publication series “Wirtschaft und Management” / “Business and Management” (Volume 22).
In the article, Eckhard Hein and Daniel Detzer outline alternative policy recommendations addressing the problems of differential inflation, divergence in competitiveness and associated current account imbalances within the Euro area. The authors provide a basic framework to systematically address the related issues, and based on this framework, they outline the required stance for alternative economic policies. Furthermore, they discuss the implications for alternative monetary, wage/incomes and fiscal policies in the Euro area as a whole as well as the consequences for structural and regional policies in the Euro area periphery in particular.