Relative Prices and Economic Adjustment in the U.S. and the EU: A Real Story About European Monetary Union
Summary:
Structural vector autoregressions are used to analyze the relationship between real output and relative prices within the EU and the United States, Relative price variability appears to be more important for adjustment within the EU than the United States, reflecting the lower integration of goods and factor markets. In the absence of higher market integration, the lower relative price variability implied by the introduction of a single currency in the EU could well cause significant economic disruption.
Series:
Working Paper No. 1994/065
Subject:
Currencies Econometric analysis Economic integration Exchange rates Foreign exchange Monetary unions Money National accounts Personal income Structural vector autoregression
Notes:
Also published in Staff Papers, Vol. 42, No. 1, March 1995.
English
Publication Date:
June 1, 1994
ISBN/ISSN:
9781451848632/1018-5941
Stock No:
WPIEA0651994
Pages:
36
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