Resilience to the Crisis in the Economic and Monetary Union

Abstract

 

Economic resilience is a specific feature of economic and monetary unions, because their policies of addressing the events with economic impact are limited in number.

The resilient economies are capable to eliminate more easily the vulnerability hazard by addressing the shocks head-on, by preventing unsustainable booms, by reducing the amplitude of recession and the spill-over effect. A resilient economy is capable to absorb shocks, without increasing the volatility of economic growth, inflation and unemployment, regaining its previous level of performance. .

The poor adjustment capacity of Euro-area became a cause for concern, the member states showing uneven and insufficient abilities to address both asymmetric shocks and common shocks with asymmetric effect.