The Competitiveness Dynamics in the Eurozone
The goal of this paper is to analyze the long term dynamics of the competitiveness in the individual Eurozone countries and to estimate how their competitiveness is affected by the dynamics of both external (i.e. the current account) and internal (the fiscal stance and the credit dynamics) positions. It is today in creasingly recognized that the diverging competitiveness between the Eurozone members is at the root of the current crisis. But the competitiveness dynamics and how it is impacted by the crucial fiscal and financial variables during the common currency existence is seldom analyzed and compared, especially as far as the different countries are concerned. This paper aims to contribute to filling this gap.
