Herwartz, Helmut; Weber, Henning - Sonderforschungsbereich Ökonomisches Risiko <Berlin> - 2008
Microfoundations of the euro´s effect on euro area trade hinge on the timing, thespeed and the size of adjustment in … level. We find that, due to falling trade costs,trade within the euro area increases between the years 2000 and 2003 by 10 … to 20percent compared with trade between European countries that are not members ofthe euro area. Adjustment of …