Search results for "Common currency"
showing 7 items of 7 documents
Trade imbalances within the euro area and with respect to the rest of the world
2015
Abstract Many studies have explored the determinants of current account balances in Europe. However, only in a few studies has trade balance been decomposed into intra balance, trade balance vis-a-vis the euro area, and extra balance, trade balance vis-a-vis the rest of the world. This decomposition is necessary for us to understand why some core euro area countries are acting as financial intermediaries for the periphery countries. Furthermore, the determinants of intra and extra balances might be different because nominal exchange rate cannot adjust between the EMU countries while their financial markets are highly integrated. Thus, we apply this decomposition and supplement the previous …
Effects of the European Monetary Union on High-Technology Exports
2021
AbstractOur study estimates the effects of the European Monetary Union (EMU) on high-technology (HT) export and assesses the potential knowledge spillovers of such trade. Irrespective of the importance of the HT trade channel, none of the previous studies in the literature focus on the effects of a common currency on HT trade. Increasing trade in the HT sector may lead to more efficient use of resources and help countries to move towards a knowledge-based economy. Moreover, it may lead to higher overall growth. After considering multilateral resistances, pair fixed effects and bias correction in the preferred (three-way bias-corrected) model, EMU membership becomes negative and statisticall…
Estimating the Effect of Common Currencies on Trade: Blooming or Withering Roses?
2013
Abstract Using a gravity model and data on 182 countries worldwide, this paper estimates the effects of exchange rate volatility and currency unions on international trade for ten years spanning 1980 through 2010. We provide added confirmation and further strengthen the empirical findings in Rose (2000) prior to 1999, but we find a gradually diminishing Rose effect for the 2000-2010 period, when the Euro Zone is added to the currency union dummy. The rest of the coefficients generally comply in magnitude and sign with what is standard in the “gravity” literature. Our findings support a much stronger effect of a currency union on trade than the hypothetical effect of reducing exchange rate v…
Producer Prices in the Transition to a Common Currency
2006
We analyze producer price developments in the transition from a national exchange rate regime to a monetary union. The focus is on the European Economic and Monetary Union (EMU). Stylized facts witness about an exploding gaps in producer-price inflation during the years immediately following the completion of the EMU. Price convergence is found to be an important driver throughout the entire euro period (1999-2005), but with no significant differences in speed compared to the pre euro period. Productivity growth had its primary effect in the first years and effective exchange-rate changes in the later years of the euro period.
The Economic Rationale of Fiscal Rules in OCAs: The Stability and Growth Pact and the Excessive Deficit Procedure
2013
This chapter examines the case of different regions within a single country that wish to share a common currency, even though they have divergent trends in unemployment, inflation, wages, non-wage costs and productivity. This situation compares with the case of a group of EU countries, each with its own decentralised national budget, that have established a monetary union and that are facing asymmetric shocks. As such an economic context requires fiscal commitments from national governments, we analyse the economic rationale of setting fiscal rules for a common currency area and the resulting EU institutional frame for the Stability and Growth Pact (SGP) and the Excessive Deficit Procedure …
Concepts for a Theoretical Biology
2015
Waddington is the father of Theoretical Biology and many concepts that are now the common currency of Biology-based language were coined by him, such as channelling, robustness or epigenetics. Waddington believes it is essential to work on a theory of the phenotype. The deployment of genotype to give rise to phenotype brings into play many of the laws required to formulate a theory of life. In recent times, Waddington is the best example of an advocate of cell theory; however, he was not in favour of a gene-centred approach to the study of biological evolution.
Risk-benefit in food safety and nutrition - outcome of the 2019 Parma Summer School
2021
Risk-benefit assessment is the comparison of the risk of a situation to its related benefits, i.e. a comparison of scenarios estimating the overall health impact. The risk–benefit analysis paradigm mirrors the classical risk analysis one: risk–benefit assessment goes hand-in-hand with risk–benefit management and risk–benefit communication. The various health effects associated with food consumption, together with the increasing demand for advice on healthy and safe diets, have led to the development of different research disciplines in food safety and nutrition. In this sense, there is a clear need for a holistic approach, including and comparing all of the relevant health risks and benefit…