The Time Series Properties of the Real Exchange Rates Between the Member States of the European Monetary Union

2019 ◽  
Vol 52 (2) ◽  
pp. 149-171
Author(s):  
Rainer Maurer
Keyword(s):  
Time Series ◽  
Exchange Rates ◽  
Random Walks ◽  
Monetary Union ◽  
European Monetary Union ◽  
Real Exchange Rates ◽  
Jel Classification ◽  
European Monetary ◽  
Member States ◽  
The Real

Abstract The article “The Time Series Properties of the Real Exchange Rates Between the Member States of the European Monetary Union” analyses the time series behavior of the components of the real exchange rates between the founding member states of the EMU before and after the start of the EMU. Various panel and univariate country-specific tests show that the levels of these components are typically random walks. The resulting real exchange rates are also random walks and their components are not cointegrated. It is argued that these results question the operability of the EMU under the current policy regime in the long-run. One possibility to deal with this problem could be the suspension of the principle of a “single monetary policy”. Die Zeitreiheneigenschaften der realen Wechselkurse der Mitgliedsländer der Europäischen Währungsunion Zusammenfassung Der Artikel „Die Zeitreiheneigenschaften der realen Wechselkurse der Mitgliedsländer der Europäischen Währungsunion“ untersucht das Zeitreihenverhalten der Komponenten der realen Wechselkurse zwischen den Gründerstaaten der EWU vor und nach dem Beginn der EWU. Verschiedene Panel- und univariate länderspezifische Test zeigen, dass die Niveaus dieser Komponenten typischerweise Zufallspfaden folgen. Die resultierenden realen Wechselkurse folgen ebenfalls Zufallspfaden und ihre Komponenten sind nicht kointegriert. Diese Ergebnisse, so schließt der Artikel, stellen die langfristige Funktionsfähigkeit der EWU unter dem gegenwärtigen geldpolitischen Regime in Frage. Eine Möglichkeit, dieses Problem zu adressieren, könnte in der Preisgabe des Prinzips der einheitlichen Geldpolitik bestehen. JEL Classification: E50, E31, C12

Trends in the European Monetary Union. An Overview

2021 ◽  
pp. 097215092110161
Author(s):  
Papageorgiou Christos ◽  
Anastasiou Athanasios ◽  
Liargovas Panagiotis
Keyword(s):  
Monetary Union ◽  
European Monetary Union ◽  
Inflation Rate ◽  
European Monetary ◽  
Member States ◽  
Eu Member States ◽  
Average Value ◽  
General Government ◽  
Government Deficit ◽  
The Mean

Four indicators corresponding to the four targets of the European Monetary Union were calculated. The study showed that: (a) concerning the deviation of state’s general government deficit/surplus from 3% of gross domestic product (GDP), all member states had reached their target, with the exception of Cyprus, which was slightly under the target, (b) concerning the deviation of state’s general government debt from 60% of GDP, half of all European Union (EU) member states did not reach their targets, and there was a lot to be done, especially from the EU15 member states, (c) concerning the deviation of state’s inflation rate from the mean of the three states with best results of +1.5%, it was observed that the average value of EU28 member states had reached the final target, mainly due to the performances of the EU15 member states, (d) and concerning the deviation of state’s interest rate from the mean of the three states with the best results of +2%, it was observed that the average value of EU28 member states had reached the final target.

Institutionelle Alternativen in der Europäischen Union: Das Beispiel des Stabilitäts- und Wachstumspaktes

2006 ◽  
Vol 55 (2) ◽  
Author(s):  
Renate Ohr ◽  
André Schmidt
Keyword(s):  
Monetary Union ◽  
European Monetary Union ◽  
Allocative Efficiency ◽  
Stability And Growth Pact ◽  
European Monetary ◽  
Fiscal Deficits ◽  
Member States ◽  
Growth Pact ◽  
The Stability

AbstractThe Stability and Growth Pact is one of the constituent pillars of the European Monetary Union. Though, meanwhile it is obvious that it will not be able to limit fiscal deficits of the member states. For this reason in this paper Coase′s thinking in institutional alternatives is applied to find a better way to increase the incentives for more fiscal stability. We present and discuss tradable deficit permits comprising market-orientated incentives for fiscal stability. It is shown that tradable deficit permits are superior from a politico-economical view as well as with regard to allocative efficiency.

Three Leaps in the Dark, 1950–1982

2018 ◽  
Author(s):  
Ashoka Mody
Keyword(s):  
Exchange Rates ◽  
Monetary Union ◽  
European Monetary Union ◽  
Economic Problem ◽  
European Monetary ◽  
Economic Problems ◽  
Treaty Of Rome ◽  
Post War ◽  
Practical Sense

This chapter describes the evolution of Europe's monetary union as a French initiative motivated by goal of achieving monetary and economic parity with Germany. The Schuman Declaration in 1950 brought European nations together in a spirit of reconciliation and laid the preparatory basis for post-War Europe. In 1957, the Treaty of Rome enabled the flowering of the European community—which, by the mid-1960s, had completed its primary task of establishing an institutional framework for cooperative coexistence and, by opening trade borders, had enhanced the material capabilities of the nation state. However, the European monetary union project in 1969 resulted in severe economic problems. Forcing one monetary policy on divergent nations made no logical or practical sense. Thus, repeated efforts to fix exchange rates predictably failed. Ultimately, the pursuit of monetary union created great risks and did little for Europe's real economic problem of generating long-term growth and reducing unemployment.

The Real Effects of European Monetary Union

CFA Digest ◽  
2007 ◽  
Vol 37 (2) ◽  
pp. 26-27
Author(s):  
Jonathan Wheeler Hubbard
Keyword(s):  
Monetary Union ◽  
European Monetary Union ◽  
European Monetary ◽  
The Real ◽  
Real Effects
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