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Of markets, products and prices- the effects of the euro on European firms

Author

Listed:
  • Lionel Fontagné
  • Thierry Mayer
  • Gianmarco Ottaviano

Abstract

In this Blueprint, Lionel Fontagné, Thierry Mayer and Gianmarco Ottaviano, show that trade flows have not increased meaningfully since the introduction of the euro. However, trade volume can be a misleading yardstick. Other obstaclesbe it differences in regulation, legal framework, taxes or languageare significant enough to continue to act as binding constraints on internationalisation. In terms of prices, the authors find that the euro has resulted in less volatile and lower prices, especially within the euro area, and this is a clear plus for consumers.

Suggested Citation

  • Lionel Fontagné & Thierry Mayer & Gianmarco Ottaviano, . "Of markets, products and prices- the effects of the euro on European firms," Blueprints, Bruegel, number 247, December.
    • Handle: RePEc:bre:bluprt:247
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