Euro area rebalancing: a symmetric response and easier monetary policy could facilitate the process (Jan 17, 2013) | Eurobank
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Euro area rebalancing: a symmetric response and easier monetary policy could facilitate the process (Jan 17, 2013)

• Structural reforms, wage cuts and a sharp contraction in domestic demand have led to a recoup of lost competitiveness and a reduction of external imbalances of periphery euro area members.
• A symmetric response from surplus countries could facilitate the slow and painful rebalancing process. In Germany, tight labor market conditions should be allowed to operate freely on the determination of employees’ compensation, while initiatives could be taken to boost domestic demand. Both developments would support exports of periphery members...