Exchange-Rate and Interest-Rate Driven Competitive Advantages in the EMU
AbstractReal exchange and interest rates may still fluctuate inside the EMU and give rise to changes in competitiveness. We find, in contrast to what is generally expected, no convergence in these variables after the introduction of the euro. On the contrary, a divergence is found that is extraordinary when compared to the preceding 40 years. The magnitude of the divergence should urge on a wave of restructuring in the EMU, conditioned upon adequate policy responses. the worst-case scenario involves a flight to structural support and protectionism, challenging the whole idea of the EMU.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Lund University, Institute of Economic Research in its series Working Paper Series with number 2001/8.
Length: 23 pages
Date of creation: 26 Apr 2002
Date of revision:
Contact details of provider:
Postal: Institutet för Ekonomisk Forskning, Box 7080, SE-220 07 LUND, Sweden
Phone: +46 46-222 32 61
Fax: +46 46-222 34 06
Web page: http://www.lri.lu.se/
More information through EDIRC
real exchange rates; real interest rates; EMU; competitive advantage; restructuring;
Other versions of this item:
- Andrén, Niclas & Oxelheim, Lars, 2002. "Exchange-Rate and Interest-Rate Driven Competitive Advantages in the EMU," Working Paper Series 576, Research Institute of Industrial Economics.
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- F15 - International Economics - - Trade - - - Economic Integration
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eichengreen, Barry, 2000. "The Euro One Year On," Journal of Policy Modeling, Elsevier, vol. 22(3), pages 355-368, May.
- Andreas Beyer & Jurgen A. Doornik & David F. Hendry, 2000. "Reconstructing Aggregate Euro-zone Data," Journal of Common Market Studies, Wiley Blackwell, vol. 38(4), pages 613-624, November.
- Oxelheim, Lars & Rafferty, Michael, 2005.
"On the static efficiency of secondary bond markets,"
Journal of Multinational Financial Management,
Elsevier, vol. 15(2), pages 117-135, April.
- Oxelheim, Lars & Rafferty, Michael, 2002. "On the Static Efficiency of Secondary Bond Markets," Working Paper Series 2001/7, Lund University, Institute of Economic Research.
- Oxelheim, Lars & Rafferty, Michael, 2004. "On the Static Efficiency of Secondary Bond Markets," Working Paper Series 623, Research Institute of Industrial Economics.
- Feldstein, Martin, 2000.
"The European Central Bank and the Euro: The First Year,"
Journal of Policy Modeling,
Elsevier, vol. 22(3), pages 345-354, May.
- Martin Feldstein, 2000. "The European Central Bank and the Euro: The First Year," NBER Working Papers 7517, National Bureau of Economic Research, Inc.
- Lars Oxelheim & Clas Wihlborg, 2003.
"Recognizing Macroeconomic Fluctuations In Value Based Management,"
Journal of Applied Corporate Finance,
Morgan Stanley, vol. 15(4), pages 104-110.
- Oxelheim, Lars & Wihlborg, Clas, 2002. "Recognizing Macroeconomic Fluctuations in Value Based Management," Working Paper Series 574, Research Institute of Industrial Economics.
- Pinelopi K. Goldberg & Michael M. Knetter, 1996.
"Goods Prices and Exchange Rates: What Have We Learned?,"
NBER Working Papers
5862, National Bureau of Economic Research, Inc.
- Pinelopi Koujianou Goldberg & Michael M. Knetter, 1997. "Goods Prices and Exchange Rates: What Have We Learned?," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1243-1272, September.
- Oxelheim, Lars & Randøy, Trond, 2001.
"The Impact of Foreign Board Membership on Firm Value,"
Working Paper Series
567, Research Institute of Industrial Economics.
- Oxelheim, Lars & Randoy, Trond, 2003. "The impact of foreign board membership on firm value," Journal of Banking & Finance, Elsevier, vol. 27(12), pages 2369-2392, December.
- Feldstein, Martin, 2000. "The European Central Bank and the Euro: The First Year," Scholarly Articles 3043424, Harvard University Department of Economics.
- European Commission, 2001. "EMU: The First Two Years," Papers 42, Commission of the EEC - Euro Papers.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elsbeth Andersson).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.