A working paper published by the Bank of Italy looks at how different eurozone countries’ manufacturing industries have developed since monetary union.

In Patterns of convergence (divergence) in the euro area: profitability versus cost and price indicators, Monica Amici, Emmanuele Bobbio and Roberto Torrini find that trends in both costs and profits “have followed divergent paths” in different countries. They also find that “profitability developments only partially overlap with those of unit