Adjustment with the Euro
Subtitle: the difficult case of Portugal
By: Olivier Blanchard
Contributors: Massachusetts Institute of Technology. Dept. of Economics
Edition: Rev.
Series: Working paper series / Massachusetts Institute of Technology, Dept. of Economics -- working paper 06-04, Revised; Working paper (Massachusetts Institute of Technology. Dept. of Economics) -- no. 06-04.
Publisher: Massachusetts Institute of Technology, Dept. of Economics
Published: 2006
Place of publication: Cambridge, MA
Language: eng
Number of pages: 28
Description: In the second half of the 1990s, the prospect of entry in the euro led to an output boom and large current account deficits in Portugal. Since then, the boom has turned into a slump. Current account deficits are still large, and so are budget deficits. This paper reviews the facts, the likely adjustment in the absence of major policy changes, and examines policy options. Keywords: Unemployment, competitive disinflation, euro, productivity growth, common currency, competitiveness. JEL Classifications: E24, F41, J6.
Notes: "February 23, 2006. -- Revised: November 11, 2006."

Includes bibliographical references (p. 25-28).

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