Chapter Eight: Economic stagnation in the Euro Area
Abstract
Output growth in countries that later formed the Euro Area has been slowing down secularly. The growth deceleration correlates with the tendency for the suppression of wages. Liberalization of private capital flows was followed by internal policy changes including labor market flexibilizations. Under the Maastricht Treaty stressing fiscal continence economic integration progressed but the performance failed to improve. The inability to nominally devalue condemns the external deficit countries to protracted recessions. With the present trends governing the functional income distribution, ...
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