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One of the challenges of the Economic and Monetary Union (EMU) is achieving a balanced sustainable expansion of … economic activity conducive to macroeconomic stability and financial sustainability of the EMU. In the paper, we evaluate the … EMU policies for their effectiveness of smoothening economic cycles in the aggregate. We discuss the pros and cons of the …
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Summary This paper derives equilibrium real exchange rates for the EU member countries that joined in 2004 and in 2007. Our analysis is based on the natural real exchange rate approach and uses data for the period 1980-2007. We employ a two-step estimation strategy to deal with the limited...
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