Baldwin, Richard E.; Skudelny, Frauke; Taglioni, Daria - 2005
This paper contributes to the literature on the impact of EMU on trade, adding two new elements. First, we propose a … theoretical model for explaining how the euro could have increased trade by the large amounts found in the empirical literature … monopolistic competition set-up, the effect of exchange rate uncertainty on trade has nonlinear features, suggesting that EMU and a …