Biroli, Pietro; Mourre, Gilles; Turrini, Alessandro Antonio - C.E.P.R. Discussion Papers - 2010
This paper analyses the adjustment mechanism in the euro area. Results show that the real exchange rate (REER) adjusts in such a way to redress cyclical divergences and that after monetary unification REER dynamics have become less reactive to country-specific shocks but also less persistent. It...