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of the euro area. For this purpose, we differentiate between the departure of weak and strong countries, and examine the …
Persistent link: https://www.econbiz.de/10010421238
This paper examines the evolution of public support for the euro since its introduction as a virtual currency in 1999 … popularity of the euro. We find that a majority of citizens support the euro in each individual member country of the euro area … econometric work demonstrates that unemployment is a key driver of support behind the euro. Given these developments, we discuss …
Persistent link: https://www.econbiz.de/10011984438
This chapter examines the evolution of public support for the euro and public trust in the European Central Bank (ECB … currency, we find that a majority of citizens in every member country of the euro area (EA) support the euro. The economic … crisis in the EA following the Great Recession and the euro crisis led to a slight decline in public support for the euro but …
Persistent link: https://www.econbiz.de/10013208851
This paper reviews the performance of the euro area since the euro's launch 20 years ago. It argues that the euro … crisis has exposed existential flaws in the euro regime. Intra-area divergences and the corresponding buildup of imbalances … unemployment continue to plague euro crisis countries. Its huge current account surplus highlights that the euro currency union …
Persistent link: https://www.econbiz.de/10012142958
The accession of Central European countries to the European Union implies the possibility of euro area membership once … euro area. In particular, the prospects for structural and cyclical convergence in an enlarged euro area have been little … investigated so far. How synchronized are business cycles between the Central European new EU countries (CE-EU- 8) and current euro …
Persistent link: https://www.econbiz.de/10010301204
This paper surveys the optimum currency area (OCA) literature. It is organised into four phases: the 'pioneering phase' which put forward the OCA theory and its properties, the 'reconciliation phase' when its diverse facets were combined, the 'reassessment phase' that led to the 'new OCA theory'...
Persistent link: https://www.econbiz.de/10011604184
The start of the European Economic and Monetary Union (EMU) has spurred a new interest in the debate on the effects of monetary unions on regional economic integration. This literature either investigates past episodes of monetary unions or attempts to gauge any effect with a few years of EMU...
Persistent link: https://www.econbiz.de/10011606192
This paper studies the effects of foreign exchange (FX) interventions in a two-region New Keynesian model where governments issue both short-term and long-term bonds. Imperfect substitutability between bonds gives rise to portfolio balance effects that make FX interventions effective....
Persistent link: https://www.econbiz.de/10013396508
This paper contributes to the debate on the magnitude of exchange rate elasticities by providing a set of price and quantity elasticities for 51 advanced and emerging-market economies. Specifically, for each of these countries we report the elasticity of trade prices and trade quantities on both...
Persistent link: https://www.econbiz.de/10012014449
Understanding and predicting the evolution of exports after a change in the nominal exchange rate is of central importance in international economics. Most of the literature focuses on estimating this relationship by reduced form, with the aim of uncovering a single structural parameter, but...
Persistent link: https://www.econbiz.de/10013272221