theoretical model for explaining how the euro could have increased trade by the large amounts found in the empirical literature …. Second, we propose a sectoral dataset to test the insights from the theory. Our theoretical model shows that in a …

, the USA and the Euro Area, severely. Uncertainties about the future abound. While the challenges are similar for both … capital market. In the Euro Area, uncertainty is higher than in the US and this could make disinflation in Europe more painful …

. First, the introduction of the Euro currency unit greatly reduces the complexity of including foreign exchange risk in asset … pricing models. We use a synthetic Euro excess return along with a Yen excess return to assess country equity sensitivities to …