Koen, Vincent; Boone, Laurence; de Serres, Alain; … - 2001
During the first two years of monetary union, the euro's weakness surprised most market participants. Explanations … proliferated ranging from fundamentals such as differences in growth prospects to psychological factors such as herd behaviour, but … empirical analysis showing that terms-of-trade and saving/investment behaviour seem to have driven the euro exchange rate over …
