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Price Impacts of Non-Adoption of the Euro for Small European Countries
by Harald Anderson,Mrs. Sibel Yelten
Published on 2006-06-01 by International Monetary Fund

Debates surrounding the adoption of a common currency have focused on its benefits weighed against the long-term costs of losing monetary independence. These debates have assumed that the penalty for not adopting a common currency is the maintenance of the status quo. This paper uses the Sjaastad model to analyze the price-making power of major currencies with regard to the prices of traded goods in small countries that have not adopted the euro and uses the Bayoumi-Eichengreen OCA index methodology to shed further light on changes in Europe. The empirical evidence suggests that small countries that have not adopted the euro have increasingly seen a change in the determinants of their traded goods prices. This seems to contrast with the experience of small countries that adopted the euro. The results need to be interpreted carefully, given the short time series.

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Book ID of Price Impacts of Non-Adoption of the Euro for Small European Countries is qrzmWoioU7AC, Book which was written byHarald Anderson,Mrs. Sibel Yeltenhave ETAG "7u1iqdWaiW8"

Book which was published by International Monetary Fund since 2006-06-01 have ISBNs, ISBN 13 Code is 9781452703367 and ISBN 10 Code is 1452703361

Book which have 20 Pages

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