IDEAS home Printed from https://ideas.repec.org/a/eej/eeconj/v28y2002i1p71-88.html
   My bibliography  Save this article

Explaining the EURO's Initial Decline

Author

Listed:
  • Philip Arestis

    () (The Business School, South Bank University London)

  • Iris Biefang-Frisancho Mariscal

    (University of East London)

  • Andrew Brown

    (Leeds Univesrity)

  • Malcolm Sawyer

    (Leeds Univesrity)

Abstract

This paper argues that the inception of the euro itself, with its restrictive monetarist institutional structures, to an area which is in a divergent state, which has recently been widened by a process of divergence, is ample reason for long term investors, and, indeed, post-"euphoric", short term speculators, to regard the euro area as structurally weaker since January 1999. It is difficult to predict the fixture course of the euro; once portfolio investors have shifted fully back to their pre-"euphoria" level of holdings of euros, then any number of contingencies may come into play.

Suggested Citation

  • Philip Arestis & Iris Biefang-Frisancho Mariscal & Andrew Brown & Malcolm Sawyer, 2002. "Explaining the EURO's Initial Decline," Eastern Economic Journal, Eastern Economic Association, vol. 28(1), pages 71-88, Winter.
  • Handle: RePEc:eej:eeconj:v:28:y:2002:i:1:p:71-88
    as

    Download full text from publisher

    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume28/V28N1P71_88.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hein, Eckhard & Truger, Achim, 2002. "European Monetary Union: Nominal convergence, real divergence and slow growth? An investigation into the effects of changing macroeconomic policy institutions associated with monetary union," WSI Working Papers 107, The Institute of Economic and Social Research (WSI), Hans-Böckler-Foundation.
    2. Philip Arestis & Malcolm Sawyer, 2002. "The Euro, Public Expenditure and Taxation," Economics Working Paper Archive wp_357, Levy Economics Institute.
    3. Heng Chen & Dietrich K. Fausten & Wing-Keung Wong, 2006. "Evolution Of Dollar/Euro Exchange Rate Before And After The Birth Of Euro And Policy Implications," Monash Economics Working Papers 14/06, Monash University, Department of Economics.

    More about this item

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eej:eeconj:v:28:y:2002:i:1:p:71-88. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Victor Matheson, College of the Holy Cross). General contact details of provider: http://edirc.repec.org/data/eeaa1ea.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.