Cloth $110.00 ISBN: 9780226012834 Published April 2010
E-book $7.00 to $45.00 About E-books ISBN: 9780226012858 Published April 2010

Europe and the Euro

Edited by Alberto Alesina and Francesco Giavazzi

Edited by Alberto Alesina and Francesco Giavazzi

472 pages | 81 line drawings, 71 tables | 6 x 9 | © 2010
Cloth $110.00 ISBN: 9780226012834 Published April 2010
E-book $7.00 to $45.00 About E-books ISBN: 9780226012858 Published April 2010
It is rare for countries to give up their currencies and thus their ability to influence such critical aspects of their economies as interest and exchange rates. Yet ten years ago a number of European countries did exactly that when they adopted the euro. Despite some dissent, there were a number of arguments in favor of this policy change: it would facilitate exchange of goods, money, and people by decreasing costs; it would increase trade; and it would enhance efficiency and competitiveness at the international level.
A decade is an ideal time frame over which to evaluate the success of the euro and whether it has lived up to expectations. To that aim, Europe and the Euro looks at a number of important issues, including the effects of the euro on reform of goods and labor markets; its influence on business cycles and trade among members; and whether the single currency has induced convergence or divergence in the economic performance of member countries. While adoption of the euro may not have met the expectations of its most optimistic proponents, the benefits have been many, and there is reason to believe that the euro is robust enough to survive recent economic shocks. This volume is an essential reference on the first ten years of the euro and the workings of a monetary union.
Acknowledgments ix


Introduction 1


Alberto Alesina and Francesco Giavazzi


1. The Breakup of the Euro Area 11


Barry Eichengreen


Comment: Martin Feldstein


2. The Euro and Structural Reforms 57


Alberto Alesina, Silvia Ardagna, and Vincenzo Galasso


Comment: Otmar Issing


3. The Euro and Firm Restructur


Matteo Bugamelli, Fabiano Schivardi, and Roberta Zizza


Comment: Gianmarco I. P. Ottaviano


4. Business Cycles in the Euro Area


Domenico Giannone, Michele Lenza, and Lucrezia Reichlin


Comment: Tommaso Monacelli


5. The Estimated Trade Effects of the Euro:


Why Are They Below Those from Historical


Monetary Unions among Smaller Countries?


Jeffrey Frankel


Comment: Silvana Tenreyro


6. A New Metric for Banking Integration in Europe


Reint Gropp and Anil K Kashyap


Comment: Loretta J. Mester


7. Why the European Securities Market Is Not Fully Integrated


Alberto Giovannini


Comment: Richard Portes


8. The Euro and Fiscal Policy


Antonio Fatás and Ilian Mihov


Comment: Roberto Perotti


9. How Central Bankers See It: The First Decade of European Central Bank Policy and Beyond


Stephen G. Cecchetti and Kermit L. Schoenholtz


Comment: Pervenche Berès


10. Reevaluating Swedish Membership in the European Monetary Union: Evidence from an Estimated Model


Ulf Söderström


11. Euro Membership as a U.K. Monetary Policy Option: Results from a Structural Model


Riccardo DiCecio and Edward Nelson


Comment on Chapters 10 and 11: Carlo A. Favero


Contributors   Author Index  Subject Index


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