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Why the euro area needs new convergence goals and how to choose them

Abstract

Economic convergence is generally taken as an important requirement for the euro area to function correctly. Without this, the significant differences between euro area economies could make sharing a currency problematic. As Anna auf dem Brinke writes, however, political and market forces have so far proven unable to prevent imbalances between member states. She argues that new convergence goals should be a key priority for the euro area and suggests a number of principles for choosing better convergence indicators

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