This paper develops a DSGE model for an open economy and estimates it on euro area data using Bayesian estimation techniques. The model features nominal and real frictions, as well as financial frictions in the form of liquidity constrained households. The model incorporates active monetary and...

This paper uses QUEST III, a multi-region DSGE model, to study the macroeconomic effects of a gradual equalization of official foreign reserves between dollars and euros. A scenario of a shift in the composition of foreign reserves holdings from the present ratio of 65 percent dollars and 25...

All European Union Member States are part of the Economic and Monetary Union and as part of this union, these countries coordinate their economic policy-making in order to support and comply with EU aims. In doing so, more than half of the Member States have now replaced their national currency...

Since the launch of the euro in 2002, the number of countries using the common currency has increased to 19 Member States, with the euro area now made up of the following countries: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania,...

This survey is the 18th in a series which began in 2004 and has helped the European Commission to track opinion, levels of knowledge and familiarity with the single currency among citizens regarding the future introduction of the common currency. The report looks at: - levels of knowledge about...

The euro area consists of those Member States (MS) of the European Union (EU) that have adopted the euro as their common currency and sole legal tender. The euro was introduced to world financial markets as an accounting currency on 1 January 1999. Aſter a transitional period of three years...