Abstract
As of 1 January 1999, the introduction of the euro has brought about the definite vanishing of independent fluctuations in the national European exchange rates with the US dollar. As a consequence, the economies in the European Monetary Union (EMU) have given up a potential means for absorbing asymmetric shocks not only inside EMU, but also with the rest of the world. In other words, a unique euro-dollar exchange rate is less likely to manage shocks between the two sides of the Atlantic that spread asymmetrically across Europe.
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Cavallari, L., De Arcangelis, G. (2001). Symmetry or Asymmetry in European Dollar Policies?. In: Moser, T., Schips, B. (eds) EMU, Financial Markets and the World Economy. Springer, Boston, MA. https://doi.org/10.1007/978-1-4757-5131-4_9
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DOI: https://doi.org/10.1007/978-1-4757-5131-4_9
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