Belke, Ansgar; Dreger, Christian - 2011
of the common currency. In this paper, the imbalances are traced back to catching up and competitiveness factors using … competitiveness channel is more robust and shows the expected sign, i.e. a real appreciation leads to external deficits. To restore … competitiveness, a reduction of unit labour costs is on the agenda. Since a deterioration of competitiveness is not a feasible …