Portuguese Economic Journal

, Volume 6, Issue 1, pp 1–21

Adjustment within the euro. The difficult case of Portugal

Open AccessOriginal Article

DOI: 10.1007/s10258-006-0015-4

Cite this article as:
Blanchard, O. Port. Econ. J. (2007) 6: 1. doi:10.1007/s10258-006-0015-4


In the second half of the 1990s, the prospect of entry in the euro led to an output boom and large current account deficits in Portugal. Since then, the boom has turned into a slump. Current account deficits are still large, and so are budget deficits. This paper reviews the facts, the likely adjustment in the absence of major policy changes, and examines policy options.

JEL Classification



Common currencyEuroAppreciationDepreciationCompetitivenessCurrent account deficitExpansionRecessionPortugalProductivity growth
Download to read the full article text

Copyright information

© Springer-Verlag 2006

Authors and Affiliations

  1. 1.Department of EconomicsMITCambridgeUSA