imabalances core periphery

euro area

Euro Area Woes

When an economy or area is jostled from monetary equilibrium, underlying “problems” show up. In this case, what became evident from lack of “integration” was the current account “imbalances” between the “core” and “periphery”.Using Germany and Spain as “representative agents” for the “core” and “periphery”, respectively, we get a good handle on the lack of integration.