In this paper we estimate the early effect of the European Monetary Union (EMU) on trade and its possible effects on the UK. We use a panel data set that includes the most recent information on bilateral trade for 22 developed countries from 1992 through 2001. After 1999, 12 European countries...

The relevance of transport costs has increased as liberalization continues to reduce artificial barriers to trade. Countries need to adopt policies to “get closer†to global markets. Can improvements in infrastructure and regulation reduce transport costs? Is it worthwhile to implement...

Inflation can “grease†the wheels of the labor market by relaxing downward wage rigidity but it can also increase uncertainty and have a negative “sand†effect. This paper studies the grease effect of inflation by looking at whether the interaction between inflation and labor...