The euro can be seen as the world's largest economic policy experiment. Six years ago, European nations accounting for 20% of world output, 30% of world trade, and 300 million people found themselves using the same currency. Given the importance that monetary regimes have on the course of human events, this should have had effects all across the board aaffecting everything from unions' wage bargaining to educational exchanges and corporate investment strategies. This report reviews the existing empirical literature on the trade effects of currency unions, in non-European and European cases. It goes on to speculate on the types of economic mechanisms that might be driving these trade effects and proposes diagnostic tests that could help reject some or all of the theoretical explanations. Finally, conclusions on the size of the trade effect of the euro are drawn.an Evidence-based Analysis of the Euroa#39;s Trade Effects Richard E. Baldwin ... of the Internal Market Advisory Committee (IMAC), the group of Member State officials who advise the Commission on ... 4 Value of pension fund assets 1 Intra- EU foreign direct 12 investment (FDI) Telecommunication costs 9 Intra-EU trade 14anbsp;...
|Title||:||In Or Out|
|Author||:||Richard E. Baldwin|
|Publisher||:||Centre for Economic Policy Research - 2006|