scholarly journals The Impact of the European Monetary Union on Inflation Persistence in the Euro Area

2009 ◽  
Author(s):  
Barbara Meller ◽  
Dieter Nautz
Keyword(s):  
Monetary Union ◽  
Euro Area ◽  
European Monetary Union ◽  
European Monetary ◽  
Inflation Persistence ◽  
The Impact

scholarly journals The Real Effects of European Monetary Union

2006 ◽  
Vol 20 (4) ◽  
pp. 47-66 ◽  
Author(s):  
Philip R Lane
Keyword(s):  
Monetary Union ◽  
Euro Area ◽  
European Monetary Union ◽  
Economic Downturn ◽  
Relative Importance ◽  
European Monetary ◽  
Real Effects ◽  
Inflation Differentials ◽  
Exchange Rate Movements ◽  
The Impact

We explore the impact of European monetary union on the economies of the member countries. Inflation differentials across the euro area have been persistent, such that cumulative real exchange rate movements across the euro area have been quite substantial. The adoption of the euro has indeed contributed to greater economic integration; however, economic linkages with the rest of the world have also been growing strongly, such that the relative importance of trade within the European monetary union has not dramatically increased. In terms of future risks, a severe economic downturn or financial crisis in a member country will be the proving ground for the future political viability of the euro.

scholarly journals Analysis of shocks affecting Europe: EMU and some central and eastern acceding countries

2009 ◽  
Vol 56 (1) ◽  
pp. 21-38 ◽  
Author(s):  
Arfa Ben
Keyword(s):  
Monetary Union ◽  
Euro Area ◽  
European Monetary Union ◽  
Structural Changes ◽  
Output Growth ◽  
Structural Var ◽  
European Countries ◽  
European Monetary ◽  
Demand Shocks ◽  
East European

This paper deals with the synchronization of business cycles and economic shocks between the euro area and acceding countries. We therefore extract the business cycle component of output by using Hodrick-Prescott filter. Supply and demand shocks are recovered from estimated structural VAR models of output growth and inflation using long run restriction (Blanchard and Quah). We then check the (A) symmetry of these shocks by calculating the correlation between euro area shocks and those of the different acceding countries. We find that several acceding countries have a quite high correlation of demand shocks with the euro area however supply shocks are asymmetric; the correlation between euro area and central and east European countries (CEECs) is negative. We therefore conclude that joining the European Monetary Union is not yet possible: central and east European countries have to make structural changes to join the European Monetary Union.

scholarly journals From the European Monetary Union to a euro–bancor: a stock–flow consistent assessment

2018 ◽  
Vol 16 (1) ◽  
pp. 8-26 ◽  
Author(s):  
Jacques Mazier ◽  
Sebastian Valdecantos
Keyword(s):  
Monetary Union ◽  
Euro Area ◽  
European Monetary Union ◽  
Growth Cycle ◽  
Sustainable Growth ◽  
European Monetary ◽  
Simulation Experiments ◽  
Consistent Assessment ◽  
Current Setting ◽  
Stock Flow

The crisis of the euro area has questioned the fairness, sustainability and viability of the current setting of the European Monetary Union (EMU). In this article we use a four-country stock–flow consistent (SFC) model in the tradition of Godley/Lavoie (2007a) to examine to what extent an adaptation to Europe of Keynes's plan of a clearing union with bancor balances could help reduce the imbalances that, at least in part, drove the eurozone into crisis. Our simulation experiments suggest that the implementation of Keynes's ideas may conduct European countries to a stronger and more sustainable growth cycle.

Is the Euro Working? The Euro and European Labour Markets

2004 ◽  
Vol 24 (2) ◽  
pp. 147-168 ◽  
Author(s):  
STEPHEN J. SILVIA
Keyword(s):  
Monetary Policy ◽  
Monetary Union ◽  
Euro Area ◽  
European Monetary Union ◽  
Structural Adjustment ◽  
Labour Markets ◽  
Fiscal Consolidation ◽  
European Monetary ◽  
Currency Area ◽  
Made In

Now that time has passed since the introduction of the euro as a commercial currency, it is possible to assess many arguments made in the abstract during the 1990s about European monetary union. This article shows that the euro zone still falls short as an optimal currency area in most respects. In particular, it undertakes an empirical analysis of the labour market and finds no progress toward flexibility or integration. These results challenge assertions of ‘endogenous currency area’ proponents that the euro area would become optimal ‘after the fact’, and that labour markets would serve as the principal avenue of adjustment. Instead, a ‘rigidity trap’ has developed in the euro area, consisting of relatively tight monetary policy, forced fiscal consolidation, and a risk of deflation in some economies. These conditions have compounded the difficulties of structural adjustment in European labour markets.

scholarly journals Effects of economic clusters, FDI and R&D on Innovation: Developing Countries in European Monetary Union Example

2019 ◽  
Vol 7 (2) ◽  
pp. 236-251 ◽  
Author(s):  
Durmuş Çağrı Yıldırım ◽  
KORHAN ARUN
Keyword(s):  
Developing Countries ◽  
Developing Country ◽  
Monetary Union ◽  
European Monetary Union ◽  
Gdp Per Capita ◽  
European Monetary ◽  
Moderation Effect ◽  
Empirical Results ◽  
Per Capita ◽  
The Impact

This study investigates the impact of clusters, FDI, RD, and GDP per capita on innovation. Using a unique panel dataset obtained from eight developing countries with similar innovation levels that are in and out of economic clusters from 2001-2014. The empirical results show that dynamic (uncountable) effects of clusters are not statistically significant on innovation, but static effects (countable) are. Therefore, clusters are effective for developing countries on trade but not innovation directly that developing country should increase trade for innovation spillover by moderation effect of being in economic unions.

scholarly journals Pitfalls of DSGE Model Approach in Monetary Union

2019 ◽  
Vol 10 (4) ◽  
pp. 369-382
Author(s):  
Zlatica Konôpková
Keyword(s):  
Monetary Union ◽  
European Monetary Union ◽  
Model Estimation ◽  
Dsge Model ◽  
European Monetary ◽  
Country Size ◽  
Policy Simulations ◽  
The Stability ◽  
The Impact ◽  
Model Approach

Abstract This paper investigates the impact of country size on the DSEG model estimation of the monetary union. Following DSGE model for fiscal policy simulations (FiMod) the union is considered to have a two-country structure, the investigated country has weight in union equal to its population share and the second country represents the rest of members. The model is estimated for different country sizes and it is found there are two areas of equilibrium instability which covers 11 of 19 European Monetary Union members. The result is in contrary with Stähler and Thomas (2012) who estimated FiMod for Spain and stated that model can be recalibrated to every member of the monetary union. According to the result the size of country matters and affects the stability of equilibrium. Therefore, special attention is paid to small economies in monetary union. The results and consequences are then discussed with examples from recent history.

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