The European Central Bank and the Euro: The First Year
AbstractThe creation of the euro and the European Central Bank is a remarkable and unprecedented event in economic and political history: creating a supranational central bank and leaving eleven countries without national currencies of their own. The experience of the first year confirms that one size fits all' monetary policy is not suitable for Europe because cyclical and inflation conditions vary substantially among countries. Labor market policies during this first year will increase this problem in the future and may lead to more trade protectionism. The paper explores reasons why cyclical unemployment, structural unemployment, and inflation may all be higher in the future as a result of the single currency. Although some advocate the euro despite its economic problems because of its assumed favorable effects on European political cohesiveness, the paper argues that it is more likely to lead to political conflict within Europe and with the Unites States.
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 Harvard University Department of Economics in its series Scholarly Articles with number 3043424.
Date of creation: 2000
Date of revision:
Publication status: Published in Journal of Policy Modeling
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Philip Arestis & Iris Biefang-Frisancho Mariscal & Andrew Brown & Malcolm Sawyer, 2001.
"The Causes of Euro Instability,"
Economics Working Paper Archive
wp_324, Levy Economics Institute, The.
- Philip Arestis & Andrew Brown & Kostas Mouratidis & Malcolm Sawyer, 2002. "The Euro: Reflections on the first three years," International Review of Applied Economics, Taylor & Francis Journals, vol. 16(1), pages 1-17.
- Jérôme Creel & Jacky Fayolle, 2002.
"La Banque centrale et l'Union monétaire européennes : les tribulations de la crédibilité,"
Revue de l'OFCE,
Presses de Sciences-Po, vol. 0(5), pages 211-244.
- Jacky Fayolle & Jérôme Creel, 2002. "La banque centrale et l’union monétaire européennes : les tribulations de la crédibilité," Sciences Po publications info:hdl:2441/2942, Sciences Po.
- Karsten Staehr, 2008. "The Maastricht Inflation Criterion and the New EU Members from Central and Eastern Europe," Bank of Estonia Working Papers 2008-04, Bank of Estonia, revised 30 Oct 2008.
- 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.
- Andrén, Niclas & Oxelheim, Lars, 2002. "Exchange-Rate and Interest-Rate Driven Competitive Advantages in the EMU," Working Paper Series 2001/8, Lund University, Institute of Economic Research.
- Jacky Fayolle & Jérôme Creel, 2002.
"La Banque centrale européenne ou le Seigneur des euros,"
Sciences Po publications
info:hdl:2441/3004, Sciences Po.
- Jérôme Creel & Jacky Fayolle, 2002. "La Banque Centrale Européenne ou le Seigneur des euros," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(5), pages 175-210.
- Jacky Fayolle & Jérôme Creel, 2002. "La Banque centrale européenne ou le Seigneur des euros," Sciences Po publications info:hdl:2441/2967, Sciences Po.
- Alexandra Ferreira-Lopes & Álvaro Pina, 2011.
"Business Cycles, Core, and Periphery in Monetary Unions: Comparing Europe and North America,"
Open Economies Review,
Springer, vol. 22(4), pages 565-592, September.
- Alexandra Ferreira Lopes & Álvaro M. Pina, 2008. "Business Cycles, Core and Periphery in Monetary Unions: Comparing Europe and North America," Working Papers Department of Economics 2008/21, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Alexandra Ferreira-Lopes & Álvaro M. Pina, 2008. "Business Cycles, Core and Periphery in Monetary Unions: Comparing Europe and North America," Working Papers Series 1 ercwp1908, ISCTE-IUL, Business Research Unit (BRU-IUL).
- Johnson, David R., 2002. "The effect of inflation targeting on the behavior of expected inflation: evidence from an 11 country panel," Journal of Monetary Economics, Elsevier, vol. 49(8), pages 1521-1538, November.
- Pompeo Della Posta, 2005. "Fundamentals, International Role of Euro and 'Framing' of Expectations: What are the Determinants of the Dollar/Euro Exchange Rate?," Working Papers de Economia (Economics Working Papers) 24, Departamento de Economia, Gestão e Engenharia Industrial, Universidade de Aveiro.
- Wan, Jer-Yuh & Kao, Chung-Wei, 2008. "The euro and pound volatility dynamics: An investigation from conditional jump process," Research in International Business and Finance, Elsevier, vol. 22(2), pages 193-207, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Reinhard Engels).
If references are entirely missing, you can add them using this form.