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Leader of the Pack? German Monetary Dominance in Europe Prior to EMU

  • J. James Reade
  • Ulrich Volz

In this paper, the monetary policy independence of European nations in the years before European Monetary Union (EMU) is investigated using cointegration techniques.� Daily data is used to assess pairwise relationships between individual EMU nations and 'lead' nation Germany, to assess the hypothesis that Germany was the dominant European nation prior to EMU.� By and large our econometric investigations support this hypothesis, and lead us to conclude that the only European nation to lose monetary policy independence in the light of monetary union was Germany.

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File URL: http://www.economics.ox.ac.uk/materials/working_papers/paper419.pdf
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Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 419.

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Date of creation: 01 Jan 2009
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Handle: RePEc:oxf:wpaper:419
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