Euro Area Policies

Author: International Monetary Fund

Volume/Issue: Volume 2004 Issue 234

Publication date: August 2004

ISBN: 9781451812909

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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Exports and Imports , Inflation , Labor , Economics- Macroeconomics , Public Finance , ISCR , CR , headline inflation , euro , rating agency Standard & Poor's , subsidized sugar export , equity price , ECOFIN Council , inflation expectation , headline inflation outcome , Labor policy , Inflation , Labor markets , Global , Europe

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Summary

The staff report on Euro Area Policies highlights cyclical growth developments and risks. The area’s real GDP growth has picked up, responding to strong foreign demand and relaxed financial conditions. The final domestic demand growth remains subdued, and the area lags global growth by a large and widening margin. Euro area corporations have taken considerable time to adjust to the boom–bust cycle in equity valuations. The shared central view is that the export-led recovery will increasingly be sustained by domestic demand growth.