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Euro Weakness in the Late Nineties

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  • Rossi, Giovanni

Abstract

The depreciation of the euro vis-à-vis the dollar over its first two years is a fact of life. By contrast the present paper offers some econometric evidence with daily data that, within a sticky price framework, monetary fundamentals may have played a role in this depreciation. A fast monetary expansion with continental European interest rate convergence in 1998 and an accommodative ECB monetary stance in 1999 would thus bear some responsibility in the weakening of the euro.

Suggested Citation

  • Rossi, Giovanni, 2004. "Euro Weakness in the Late Nineties," MPRA Paper 90272, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:90272
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    References listed on IDEAS

    as
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    Keywords

    Euro; EMU;

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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