Detalhes do Documento

The first decade of the 21st century introduced the euro in Portugal. This step towards European integration implied that Portuguese economic authorities lose monetary independence. We investigate the impact of that loss in Portuguese competitiveness through the construction of competitiveness indicators, and on current account dynamics trough a decomposition of the current account. Despite the continuous loss of competitiveness after 1999, empirically we don’t find evidence that the euro is contributing to it. We do find evidence that current account adjustment pattern changed after 1999.