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Symmetry or Asymmetry in European Dollar Policies?

Evidence from the Core Countries
  • Lilia Cavallari
  • Giuseppe De Arcangelis
Chapter

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.

Keywords

Exchange Rate Real Exchange Rate Impulse Response Function European Monetary Union Nominal Exchange Rate 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 2001

Authors and Affiliations

  • Lilia Cavallari
    • 1
  • Giuseppe De Arcangelis
    • 2
  1. 1.University of Rome “La Sapienza”Italy
  2. 2.University of BariItaly

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