This paper examines whether the introduction of the Euro in 1999 was associated with lower stock return volatility …, and Japan. We show that though the Euro led to a significant decrease in the volatility of trade-weighted exchange rates … of European countries, stock return variances of nonfinancial firms increased after its introduction. However, the Euro …

EU area and around the world, have been experiencing new situations, problems and development relating to euro long … before the euro currency was even released in January 1999. …

The size and economic relevance of Europe may imply a new role for the EURO in the international financial markets. But … will the EURO compete with the $US and the Yen for a place in the basket of international currencies? Will that induce a … run trend of the EURO depends on the economic performance of the partner countries as well as on the properties of the new …

*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 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 …

volatile euro than we have currently (as a basket of currencies). …

This paper calculates the equilibrium exchange rates for the Euro and the rest of the G-7 currencies. Building on the … multilateral equilibrium real rates into bilateral equilibrium nominal rates. The results uncover that the Euro was slightly …