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The effective exchange rates of the euro


  • Thimann, Christian
  • Buldorini, Luca
  • Makrydakis, Stelios


This paper details the methodological framework underlying the construction of the effective exchange rate (EER) indicators of the euro. This framework yields two sets of indicators - (i) one nominal and several real EER indices against a narrow reference group of euro area trading partners based on different price and cost deflators; and (ii) a nominal and a real EER index against a broad reference group of countries based on consumer prices. The narrow group consists of 12 industrial and newly industrialised euro area partner countries, while the broad group is made up of 38 trading partners including emerging market economies and economies in transition. In addition the paper computes national competitiveness indicators for the individual euro area participating countries. Finally, recent developments in the international price and cost competitiveness of the euro area as well as of euro area countries are briefly discussed on the basis of the constructed indices. JEL Classification: F31, F41, E31

Suggested Citation

  • Thimann, Christian & Buldorini, Luca & Makrydakis, Stelios, 2002. "The effective exchange rates of the euro," Occasional Paper Series 2, European Central Bank.
  • Handle: RePEc:ecb:ecbops:20022
    Note: 76331

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    More about this item


    effective exchange rate; euro; price competitiveness;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation


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