There is a significant divide in how countries of the Eurozone’s north and south react to changes in monetary policy.

The European Central Bank (ECB) is charged with maintaining price stability across the Eurozone, which it does via its monetary policies. While the euro has had some success in smoothing out the asymmetries within the Eurozone, Matteo Barigozzi finds that when the ECB changes monetary policy, the Eurozone’s southern countries experience fluctuations in prices and unemployment outside of the Eurozone’s average. He argues that these differences are down to the structural and socio-economic traits of countries such as Portugal, Greece, and Italy. National reforms that are aimed at bringing regulations more in line with the countries of the Eurozone’s north will help to smooth out the current asymmetries.