Citation

Discussion Paper Details

Please find the details for DP5536 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: The Real Effects of EMU

Author(s): Philip R. Lane

Publication Date: March 2006

Keyword(s): EMU, heterogeneity and integration

Programme Area(s): International Macroeconomics

Abstract: We explore the impact of European monetary union (EMU) on the economies of the member countries. While the annual dispersion in inflation rates have not been much different to the variation across US regions, inflation differentials in the euro area have been much more persistent, such that cumulative intra-EMU real exchange rate movements have been quite substantial. EMU has indeed contributed to greater economic integration - however, economic linkages with the rest of the world have also been growing strongly, such that the relative importance of intra-EMU trade has not dramatically increased. In terms of future risks, a severe economic downturn or financial crisis in a member country will be the proving ground for the political viability of EMU.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=5536

Bibliographic Reference

Lane, P. 2006. 'The Real Effects of EMU'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=5536