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Conditional PPP and Real Exchange Rate Convergence in the Euro Area

Bergin, Paul R. - 2016

While economic theory highlights the usefulness of flexible exchange rates in promoting adjustment in international relative prices, flexible exchange rates also can be a source of destabilizing shocks. We find that when countries joining the euro currency union abandoned their national exchange...

Persistent link: https://www.econbiz.de/10012998959

Proposal for a common currency among rich democracies

Cooper, Richard N. - 2006

Persistent link: https://www.econbiz.de/10003340384

EMU, EU, market integration and consumption smoothing

Christev, Atanas; Mélitz, Jacques - 2011

Persistent link: https://www.econbiz.de/10009378642

Is the Eurozone on the mend? : Latin American examples to analyze the euro question

Cavallo, Eduardo A.; Fernández Arias, Eduardo; Powell, … - 2014

Several European countries face challenges reminiscent of those faced by the emerging economies of Latin America. The economic booms in some peripheral Euro-zone countries financed by large capital inflows; the credit and asset price booms and then the busts including Sudden Stops in capital...

Persistent link: https://www.econbiz.de/10011286667

Cross-country insurance mechanisms in currency unions

Beers, Nancy van; Bijlsma, Michiel J.; Zwart, Gijsbert T. J. - 2014

Countries in a monetary union can adjust to shocks either through internal or external mechanisms. We quantitatively assess for the European Union a number of relevant mechanisms suggested by Mundell’s optimal currency area theory, and compare them to the United States. For this purpose, we...

Persistent link: https://www.econbiz.de/10010354695

European monetary policy in the heterogeneous currency area and the open question of convergence

Afflatet, Nicolas - 2014 - Preprint

Divergent macro-economic developments within a currency area can lead to undesired distortions. That is why in the Eurozone much attention was drawn to the homogeneity of the currency area. However, at the beginning the Eurozone seemed to be too heterogeneous for a common currency. So many hopes...

Persistent link: https://www.econbiz.de/10010358677

The European Union, the Euro, and Equity Market Integration

Bekaert, Geert - 2010

At a time of historic challenges to the viability of the Eurozone, we assess the contribution of the EU and the Euro to … segmentation is significantly lower for EU versus non- EU members. Bilateral valuation differentials remain lower for EU members …, financial regulation, and interest rate differences. Importantly, we find that EU membership reduces equity market segmentation …

Persistent link: https://www.econbiz.de/10013135396

The Euro and European Economic Conditions

Feldstein, Martin S. - 2011

The creation of the euro should now be recognized as an experiment that has led to the sovereign debt crisis in several countries, the fragile condition of major European banks, the high levels of unemployment, and the large trade deficits that now exist in most Eurozone countries. Although the...

Persistent link: https://www.econbiz.de/10013118129

How Do Monetary and Fiscal Policy Interact in the European Monetary Union?

Canzoneri, Matthew B. - 2012

Formation of the Euro area raises new questions about the coordination of monetary and fiscal policy. Using a New Neoclassical Synthesis (NNS) model, we show that a common monetary policy, responding to area-wide aggregates, has asymmetric effects on countries within the union, depending on...

Persistent link: https://www.econbiz.de/10013100660

Currency Unions and Trade : A Post-Emu Mea Culpa

Glick, Reuven - 2015

In our European Economic Review (2002) paper, we used pre-1998 data on countries participating in and leaving currency unions to estimate the effect of currency unions on trade using (then-) conventional gravity models. In this paper, we use a variety of empirical gravity models to estimate the...

Persistent link: https://www.econbiz.de/10013015976