nineties and the puzzling decline of the euro during its virtual existence to changes in the demand for deutschmarks in eastern … Europe and to variations in the demand for black money balances in Europe as a whole. We reject the view that the strength of … the dollar and the weakness of the euro reflect the prosperity of the US and the weakness of the European economy on both …

This study grounds the establishment of EMU and the euro in the context of the history of international monetary … for a more expansive monetary policy. Such demands might arise in some parts or regions or countries of the euro area, but …

-factor model. We identify them as a dollar factor and a euro factor. Exchange rates are thus driven by global, US, and Euro …

institutional framework, such as the creation of the euro by a group of European countries, will realign – after a transition period … illustrate this point, we study the case of the euro and how the party system has evolved in Southern and Northern European …

We study how the financial conditions in the Center Economies [the U.S., Japan, and the Euro area] impact other … euro) makes the response of a financial variable such as the REER and exchange market pressure in the PHs more sensitive to … a change in key variables in the U.S. (or the euro area) such as policy interest rates and the REER. While having more …

article, we provide evidence suggesting a recent rise in the use of the dollar, and fall of the use in the euro, with similar …

The European Union will enter Stage Three of Economic and Monetary Union (EMU) in 1999. The development of euro … financial markets and thickness externalities in the use of the euro as a means of payment will be the major factors determining … the importance of the euro as an international currency. As euro securities markets become deeper and more liquid and …

others used the gravity model on a much smaller data set to estimate the effects of the euro on trade among its members. The … that were estimated in the euro's first four years hold up in the second four years? The answer is yes. Second, and more … explanations for the gap between 15% and 200%. First, lags. The euro is still very young. Second, size. The European countries are …

. The main issue we focus on is how the euro may alter the responsiveness of consumer prices to exchange rate changes. Our … central conjectures is that the acceptance of the euro will lead European prices to become more insulated from exchange … and levels of macroeconomic aggregates in both the U.S. and Europe. We find that European welfare is enhanced, and, more …