The success of European Economic and Monetary Union (EMU) will depend on the stability of the euro. The monetary policy … inflation targeting rule that includes output. Implications for the euro as a reserve currency are examined in the light of the …

) of the euro (under EMU) and a basket of present currencies (pre-EMU) depends on relative sizes and specialization …

How much convergence has been achieved between Central and Eastern European (CEE) economies and the eurozone? We … explore this question by comparing long-run volatility trends in CEE currencies and the euro. We find that these trends are … euro. Spillovers of volatility across regional markets appear to have diminished over time, with the exception of the …

-optimal Ramsey policy. The macro-financial trade-off in our estimated model of the euro area turns out to be modest, implying that …

cycles in the euro-area countries; and (ii) identifies, using a small VAR model, a relatively significant role for monetary … aligned with those in the euro area in the 1990s (as they would be if the United Kingdom were to join EMU), output growth … might have been less volatile and more correlated with that in the euro area, but inflationary pressures might have …

over the period from 1948 through 2008. We find that, with the introduction of the euro, trade imbalances among euro area … tends to be more balanced when nominal exchange rates are flexible. Intra-euro area imbalances also seem to have become more … persistent with the introduction of the euro, some of which is linked to labor market inflexibility. Reviewing the direction of …

size of euro capital markets and the existing roles of European currencies in international capital markets. The paper also … examines the euro’s impact on international securities markets, including the role of the ECB, the evolution of EMU securities …, as are the broader implications of the introduction of the euro for changes in international capital flows, international …

This paper explores inflation determinants within the EU and implications for new members'' euro adoption plans. Factor …

The paper compares the degree of capital market integration across euro-area countries with that across regions in … capital flows within the euro area that would entail sizable shifts in countries’ equilibrium current accounts …