This paper takes a modest step towards formalizing the theoretical interconnections among four post-Industrial-Revolution phenomena--the industrialization and growth take-off of rich "northern" nations, massive global income divergence, and rapid trade expansion. Specifically, we present a...

This paper reviews reassesses the methodology and principal findings of the "Rose effect", i.e. the trade effects of currency union, looking at both EMU and non-EMU currency unions. The consensus estimate suggests that the euro has already boosted intra-euro area trade by five to ten percent....