The process of monetary integration in Europe began amid widespread skepticism among economists about the project. But today the success of the euro has prompted a reconsideration of whether monetary unions should be implemented elsewhere. This CESifo volume assesses contemporary theoretical and...

In this paper we attempt to answer the question of why the growth rate of international trade among the industrial countries declined by more than half since the inception of floating exchange rates. In trying to answer this question we separate the effects of exchange rate volatility from other...