We investigate whether joining the European Monetary Union and losing the ability to set monetary policy affected the economic growth of Eurozone countries. We use the synthetic control approach to create a counterfactual scenario for how each Eurozone country would have evolved without adopting...

Vor 25 Jahren, am 1. Januar 1999, schlug die Geburtsstunde des Euro. Die gemeinsame Währung hat seitdem Europa geprägt und sich neben dem Dollar als zweitwichtigste Währung in der Welt etabliert. Als erster Chefökonom stand der Autor, Otmar Issing, im Mittelpunkt des Geschehens. In vielen...

This paper studies euro changeover-related inflation using disaggregated price level data. The difference-in-differences approach is used and the control group for the treatment country, Estonia, is built from 12 euro area countries. The Nielsen Company disaggregated price data are employed at...

Using merged data from the British Household Panel Survey (BHPS) and the German Socio-Economic Panel (SOEP), this paper applies a parametric difference-in-differences approach to assess the real effects of the introduction of the euro on subjective well-being. A complementary nonparametric...

This paper uses the euro cash changeover to test theories of finite informationprocessing capacities on the side of consumers. It argues that the denomination of prices in a new currency has increased the information-processing requirements for consumers by more than for sellers, a wedge that...

What is the Eurozone and how is it developing? What are the prospects for Bulgaria's accession given the economic development and its readiness for membership? First, the economic results during the first 20 years of the introduction of the euro into monetary circulation are examined. The...

We investigate whether joining the European Monetary Union and losing the ability to set monetary policy affected the economic growth of Eurozone countries. We use the synthetic control approach to create a counterfactual scenario for how each Eurozone country would have evolved without adopting...

We investigate how adopting the euro affects exports using firm-level data from Slovakia and Estonia. In contrast to previous studies, we focus on countries that adopted the euro individually and had different exchange rate regimes prior to doing so. Following the New Trade Theory we consider...

Beginning in 1992, Greece’s economy was at least partially managed consistent with European Union (EU) membership. Greece joined the EU on January 1, 2001, adopting the Euro at a conversion rate of 340.75 Drachmas per Euro. From 1995-2000, Greece had 3.2% average GDP growth, 5.5% consumer...

Beginning in 1992, Greece's economy was at least partially managed consistent with European Union (EU) membership. Greece joined the EU on January 1, 2001, adopting the Euro at a conversion rate of 340.75 Drachmas per Euro.From 1995-2000, Greece had 3.2% average GDP growth, 5.5% consumer...

Many Europeans today ask why the European Community chose the bold strategy of pursuing an Economic and Monetary Union at a time when a number of political and economic issues had not yet been resolved. Many economists like to think that the economic case for EMU was weak and that the decision...

Most technocrats argue that creating the euro was a way of forcing the pace of political integration, since monetary union is not possible without political union. We disagree and instead put forward four minimal conditions for the survival of the euro. Political integration in Europe has its...

On 1 January 2015, Lithuania joined the euro area, becoming the 19th country within the 28 EU Member States to adopt the euro as its currency. This report analyses the findings of a survey conducted among citizens of Latvia immediately after the introduction of the euro within the country. It...

On 1 January 2015, Lithuania joined the euro area, becoming the 19th country within the 28 EU Member States to adopt the euro as its currency. This report analyses the findings of a survey conducted among citizens of Lithuania immediately after the introduction of the euro within the country. It...

Lithuania became the 19th EU Member State to adopt the euro as its currency on 1 January 2015. To help ease the transition for the general public, it was decided that the old national currency, the Lithuanian litas, would remain in circulation for two weeks alongside the euro. After two weeks,...

Lithuania became the 19th EU Member State to adopt the euro as its currency on 1 January 2015. To help ease the transition for the general public, it was decided that the old national currency, the Lithuanian litas, would remain in circulation for two weeks alongside the euro. After two weeks,...

Using the introduction of the euro as a natural experiment, we provide economy-wide evidence for money illusion based on declared donations from German administrative income tax data. Our results suggest a magnitude of the money illusion effect between 2.4% and 7.6%. Compared to previous studies...

This paper studies euro changeover-related inflation using disaggregated price level data. The difference-in-differences approach is used and the control group for the treatment country, Estonia, is built from 12 euro area countries. The Nielsen Company disaggregated price data are employed at...