Macroeconomic Imbalance In The Euro Area

The European Economic and Monetary Union is facing the most serious crisissince its‘establishment. Since the onset of European Sovereign Debt Crisis, a lotattention has been devoted to macroeconomic imbalances within the euro area.Largeand persistent intra-euro area imbalances built up during the economic upswing,creating tensions that contributed to the economic and financial crisis, although theeuro area as a whole was close to account balance.In this paper, the formation mechanism of the macroeconomic imbalances in theeuro area is explored, the difficulty of adjusting the macroeconomic imbalances in themonetary union is analyzed, and the path of coordinating the policy of member statesis explored. Meanwhile, this paper takes the national economic interests as the mainline, dialysis the logic of formation and adjusting of macroeconomic imbalances inmonetary union. The logic of "Cooperation-Imbalances-Crisis-Coordination" ineuro area is analyzed from the perspective of macroeconomic imbalances in memberstates.This will offer a new research idea in the field of conflict and convergence inmonetary cooperation from the perspective of international political economy.The research paradigm of Liberal Intergovernmentalism is used the researchframework of this paper. A "three stages research paradigm", which is "theformulation of national preference-the games between the countries-the choice ofstate institutions", is established.In the introduction part, the problems and research significance of this study areintroduced, the research terms are defined, and the main research methods used in thispaper are explained. In chapter1, the achievements in the field of macroeconomicimbalances and the integration of European economic are analyzed and reviewed. Inchapter2, the research hypothesis, analysis framework, as well as research path areputted forward. In chapter3, by analyzing the formation of economic preference and the path of divergent among the members of common monetary zone, the formationmechanism of macroeconomic imbalances in the euro area are revealed. In chapter4,the dilemma in macroeconomic imbalances adjustment in the euro area is revealed byusing Game Theory. In chapter5, the coordinating path of the macroeconomicimbalances in the euro area is researched. In the conclusion part, the points ofinnovation and shortcomings of this paper are putted forward, as well as the prospectsfor future research.