ISSN: 2450-7733
eISSN: 2300-4096
OAI
DOI: 10.18276/sip.2016.44/3-22
Issue archive /
nr 44/3 2016
AGGREGATE RELATIVE DEPRIVATION AND MACROECONOMIC IMBALANCES IN THE EURO AREA- A FIRST LOOK
| Authors: |
Julia
Włodarczyk
Uniwersytet Ekonomiczny w Katowicach |
| Keywords: | aggregate relative deprivation income comparisons macroeconomic imbalances inflation unemployment |
| Data publikacji całości: | 2016 |
| Page range: | 12 (273-284) |
| Klasyfikacja JEL: | F45 D63 |
Abstract
This paper puts the problem of macroeconomic imbalances in the euro area in an unconventional perspective, focusing on more intense interpersonal income comparisons between individuals from different euro area countries after introduction of a common currency. Costs and benefits of monetary integration (associated with more intense income comparisons) are expressed in terms of aggregate relative deprivation (ARD). It is demonstrated empirically that for 12 euro area countries greater cumulative costs of monetary integration expressed in ARD terms (“ARD losses”) in the euro area are positively correlated with greater cumulative increase in the general price level, in the unemployment rate and greater budgetary deficits. No statistically significant relationship was found for appreciation of the real effective exchange rate, nor current account deficits.
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