This paper proposes a new monetary policy framework for effectively navigating the path to adopting the euro. The … volatility to differentials over the euro zone in both inflation (target variable) and interest rate (instrument variable) is …

Since the start of EMU national fiscal policy in the Eurozone can be conducted almost without paying any attention to … the fiscal balance - a result backing an optimistic view on fiscal discipline under EMU. On the other hand, however, there … is the result that a high degree of openness has a deficit reducing impact. This is a worrying result in the EMU context …

This paper examines the current state of price convergence amongst the eleven initial EMU member states. Special … attention is given to possible changes in the convergence process during the euro cash changeover. We apply the convergence … kernel-density estimates. We find that convergence took place before 2000, slowed down substantially between 2000 and 2003 …

To study the effect of the euro on international goods trade one typically estimates a panel model for the level of … euro is only present at the end of the sample, this may have led to an upward bias in existing euro estimates to help … have different effects across country-pairs. Data on industrialized countries over 1967-2002 show the existing euro effects …

narrower with the Euro than before. We observe Sigma and Beta convergence, i.e. prices do not differ systematically between …Analyzing prices of truly homogenous consumer goods sold in Euroland, we find significant price convergence after the … Euro cash changeover in 2002. The deviation of national log prices from the mean log price of the same product is much …