European Macroeconomic Imbalances and Policy Adjustments

This is a study of the imbalances in current accounts of Eurozone countries and possible adjustment mechanisms.
The study is broken down into three parts:
- a study of the growing imbalances in current accounts inside the eurozone and the compensating factors;
- a critical look at the standard models that theorized that a virtuous rebalancing mechanism would establish itself without adjustments;
- an analysis of the structural adjustments adopted by the European Union (EU) and the Economic and Monetary Union (EMU) after the sovereign debt and banking crises.
The research aims at defining further measures to adopt, on the conviction that only expansive policies at the EU and EMU level can address the problem of macroeconomic differences within the eurozone.

Results have been presented in a meeting entitled "L’eurozona alla ricerca di un nuovo equilibrio", organised in Rome on 12 November 2014, and published in the IAI Research Papers series in January 2015 as "In Search of a New Equilibrium. Economic Imbalances in the Eurozone".