This paper focuses on a possible explanation for the weakness of the euro, namely the lack of transparency of the … analyze directly the impact of higher uncertainty on the euro-dollar exchange rate. The empirical findings are in line with … European interest rates, capital outflows, and a weaker euro vis-a-vis the U.S. dollar …

introduction of the Euro in 1999 are then examined introducing a dummy variable. Overall, it appears that post-1999 steady … determined endogenously, the adjustment is found to have taken place before the introduction of the Euro …