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It is commonplace to link neoclassical economics to 18th- or 19th-century physics and its notion of equilibrium, of a pendulum once disturbed eventually coming to rest. Likewise, an economy subjected to an exogenous shock seeks equilibrium through the stabilizing market forces unleashed by the...
Persistent link: https://www.econbiz.de/10010286507
This chapter examines the evolution of public support for the euro and public trust in the European Central Bank (ECB … currency, we find that a majority of citizens in every member country of the euro area (EA) support the euro. The economic … crisis in the EA following the Great Recession and the euro crisis led to a slight decline in public support for the euro but …
Persistent link: https://www.econbiz.de/10013208851
Austria, Finland and Sweden became members of the EU in 1995. This paper examines how support for the euro and trust in …. Support for the euro in the two euro-area members Austria and Finland has remained high and relatively stable since the … physical introduction of the new currency nearly 20 years ago, while the euro crisis significantly reduced support for the euro …
Persistent link: https://www.econbiz.de/10013208882
An often heard view is that exchange rate variability will decrease for a country that joins the EMU. This is not …
Persistent link: https://www.econbiz.de/10010321810
We examine whether the introduction of the euro had a significantly positive impact on the synchronization of business … cycles among members of Economic and Monetary Union (EMU) which might arise due to the lack of country-specific monetary … policy shocks in the euro area. Empirical evidence on this relationship is rare so far and su ers from methodical weaknesses …
Persistent link: https://www.econbiz.de/10013370103
EU countries, vis a vis the US dollar, before and after the advent of the euro. Standard as well as nonlinear unit root …
Persistent link: https://www.econbiz.de/10010273678
default. It is argued that the current crisis in Europe illustrates why the euro is not a real contender for hegemony in the …
Persistent link: https://www.econbiz.de/10010281749
the UK versus the Euro Area which are compared versus the US as a benchmark. An important role for symmetric shocks with … the Euro Area in explaining UK output fluctuations is found. However, the relative importance of asymmetric shocks, being … was stronger in the UK than the Euro Area. We also confirm existing evidence of the exchange rate being an important …
Persistent link: https://www.econbiz.de/10013370053
have had even worse results for Germany. Fragility and divergence undermine the euro's longterm survival. …
Persistent link: https://www.econbiz.de/10010266550
and the experience of EMU up to now we argue that empirical evidence on OCA criteria for EMU suggests that benefits for … the countries participating in EMU outweigh costs by a relatively large margin although by varying degrees from country to … country. Fiscal policy rules are necessary for EMU to succeed. We also conclude that EMU has been driven by political …
Persistent link: https://www.econbiz.de/10013369985