Has the Euro Promoted Eurozone’s Growth?

Has the Euro Increased International Price Elasticities? Has the Euro Increased International Price Elasticities? Hat Der Euro Die Internationale Preiselastizität

The introduction of the Euro has been accompanied by the hope that intra-EMU trade would increase and that prices would converge due to increased elasticities of international substitution. This paper contributes to the literature on the Euro’s effects on international trade by analyzing price elasticities in international trade flows between Germany and France and between Germany and the Unite...

Has the Euro Era Facilitated Inflation Convergence?

This paper investigates the long-run convergence of national inflation rates in the European Union. The application of a new test is proposed that involves unit root testing of the first principal component based on national-EU inflation differentials. Using inflation data based on harmonized consumer price indices for 1999-2007, the first principal component is stationary. This suggests that a...

The Maastricht criteria and the Euro: Has the convergence continued?

We analyze the performance of the Maastricht convergence criteria (inflation, long-term interest rate, annual and overall public debt) of the European Monetary Union (EMU) that led to the introduction of the Euro on Jan. 1 1999 as book currency. Defining 3 regimes, 1992-97, 1997-1999 and 2000-2001, we analyse convergence properties, like a smooth or a rough transition in the mean or variance sh...

Has Integration Promoted Business Cycle Synchronization in the Enlarged EU?

This paper examines whether European integration, manifesting itself in increased trade and FDI linkages, new specializations and economic policy coordination, contributed to the synchronization of business cycles in the enlarged EU. We estimate the effects on bilateral growth rate correlations in 1995-2008 in a simultaneous equations model which permits to model endogenous relationships and un...

Economic Growth And Stability In The Euro-Med Region: Concentration Or Diversification?