This book examines the implications of the creation of the euro, the new European currency unit, for the stability of … the international monetary and exchange rate system. Among the central questions addressed are: Will the euro be a strong … or weak currency? Will the euro be a rival to the dollar system? How will the euro affect monetary cooperation between …

average more concentrated than those among countries which do not share the euro. Central to this outcome is that some … economic integration agreements, such as the euro, may lead to a drop in not only trade but horizontal FDI costs as well …

persistent with the introduction of the euro, some of which is linked to labor market inflexibility. Reviewing the direction of … over the period from 1948 through 2008. We find that, with the introduction of the euro, trade imbalances among euro area … tends to be more balanced when nominal exchange rates are flexible. Intra-euro area imbalances also seem to have become more …