euro and the elimination of the intra-area currency risk can explain this puzzle. A three-country dynamic stochastic …

euro and the elimination of the intra-area currency risk can explain this puzzle. A three-country dynamic stochastic …

"exchange rate exposure" resulting from trade within the euro area. Actually, we find that this EMU exposure is nearly as high … management, particularly as it cannot be reduced by standard financial hedging instruments, such as currency derivatives. …

euro currency union abandoned their national exchange rates, the adjustment of real exchange rates toward purchasing power … mechanism and as a source of shocks. We find evidence that prior to joining the euro currency union, member countries relied …. But the loss of the exchange rate as an adjustment mechanism after the introduction of the euro was more than compensated …