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The exchange rate effects of the introduction of euro cash

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  • Francis Breedon
  • Francesca Fornasari

Abstract

The exchange-rate effects induced by the introduction of euro cash and that have been presented in the study by Hans-Werner Sinn and Frank Westermann have been empirically supported by Francis Breedon and Francesca Fornasari of Lehmann Brothers. They illustrate that the decline in demand for D-mark currency has a remarkable correlation with the declining value of the euro.

Suggested Citation

  • Francis Breedon & Francesca Fornasari, 2001. "The exchange rate effects of the introduction of euro cash," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 54(19), pages 24-26, October.
    • Handle: RePEc:ces:ifosdt:v:54:y:2001:i:19:p:24-26
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    References listed on IDEAS

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    1. Hans-Werner Sinn & Frank Westermann, 2001. "Why Has the Euro Been Falling?," CESifo Working Paper Series 493, CESifo.
    2. Barry Eichengreen & Charles Wyplosz, 1993. "The Unstable EMS," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 24(1), pages 51-144.
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    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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