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This article examines the influence of exchange rate fluctuations on public support for the euro. Existing studies of … the two euro referendums in Denmark and Sweden have explained the outcomes primarily in terms of static factors, thereby … support for the euro in the period leading up to the referendums. We argue that exchange rate fluctuations matter, because …
Persistent link: https://www.econbiz.de/10011136916
abstaining from introducing the euro. The large share of imports from euro zone countries renders a close alignment of monetary … the ECU want to impede the import of inflation from the euro zone or a declining competitiveness of the domestic industry …. In turn, the increasing role of the euro as an international reserve medium equal to the US dollar reduced the monetary …
Persistent link: https://www.econbiz.de/10011136959
Financial market crises with the threat of a subsequent debt-deflation depression have occurred with increasing regularity in the United States from 1980 through the present. Almost reflexively, when confronted with such circumstances, US institutions and the policymakers that run them have...
Persistent link: https://www.econbiz.de/10011141203
longer satisfy the demands and necessities of the European citizens (Van Ham, 2005; Habermas, 2012). The euro crisis has …, the euro crisis has generated a lack of solidarity and confidence in the European project. At this point, the major … challenge for the European Union is not only the Euro-zone crisis, but also the level of confidence amongst young people. Recent …
Persistent link: https://www.econbiz.de/10011082670
This paper explores the dominant role of politics in decisions made by euro area governments during the crisis …. Decisions that appear to have been driven by local political considerations to the detriment of the euro area as a whole are … costs across the euro area. The example of Cyprus is discussed, where political decisions resulted in a transfer of about …
Persistent link: https://www.econbiz.de/10011084126
Sovereign yield spreads within currency unions may reflect the risk of outright default. Yet, if exit from the currency union is possible, spreads may also reflect currency risk. In this paper, we develop a New Keynesian model of a small member country of a currency union, allowing both for...
Persistent link: https://www.econbiz.de/10011084136
We investigate the behaviour of gross capital flows and net capital flows for euro area member countries. We highlight …-deficit countries. Finally, we describe the reforms that can improve macro-financial stability across the euro area. …
Persistent link: https://www.econbiz.de/10011084164
before and after the introduction of the euro. Exceptions are a strong decline in real exchange rate volatility and a … EMU on standard business cycles statistics. However, further analysis reveals that the euro has changed the nature of the …
Persistent link: https://www.econbiz.de/10011084347
We study the determinants for the sovereign credit default swap (CDS) spreads of five Euro-area countries (Greece …
Persistent link: https://www.econbiz.de/10011084490
We present a new approach to study empirically the effect of the introduction of the euro on currency invoicing. Our … home currency invoicing after the introduction of the euro. In addition, the euro as a vehicle currency has overtaken the … role of the US dollar in Norwegian imports. The econometric analysis shows a significant effect of euro introduction above …
Persistent link: https://www.econbiz.de/10011090527