A working paper published today by the Deutsche Bundesbank suggests monetary union may "aggravate existing imbalances and delay necessary structural reforms", albeit that harmonised short-term interest rates and a convergence of longer-term rates "might prevent an overly abrupt adjustment process that would imply a sharp reduction in income".

In Current account adjustment in EU countries: does euro-area membership make a difference?, Sabine Herrmann and Axel Jochem evaluate current account