Breaking badly: The currency union effect on trade

As several European countries debate entering, or exiting, the euro, a key policy question concerns how much currency unions (CUs) affect trade. Despite longstanding academic on topic, recent research has continued to find that CUs exert large effect We find, by contrast, sizeable estimated impact of trade is driven other major geopolitical events and also sensitive dynamic controls. Overall, using various specifications controls, we estimate indistinct from zero but with relatively standard errors.