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argument that the convergence of nominal long-term interest rates in the periphery cluster countries, relative to the core …-causality between this convergence and subsequent (after four quarters) annual variations in the quarterly current account balance …
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In this paper we outline alternative policy recommendations addressing the problems of differential inflation, divergence in competitiveness, and associated current account imbalances within the euro area. The major purpose of these alternative policy proposals is to generate sustainably high...
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