The macroeconomic impact of the euro

Veronika Akhmadieva and Ronald Smith
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Veronika Akhmadieva: Birkbeck, University of London

No 1903, BCAM Working Papers from Birkbeck Centre for Applied Macroeconomics

Abstract: This paper examines whether the establishment of the euro caused structural breaks in the main macroeconomic relationships of member countries. It compares eight original members of the common currency with four European countries that did not join. The analysis constructs counterfactuals using both single equation models and a six equation vector autoregression with foreign exogenous variables, VARX*, explaining output, inflation, equity prices, exchange rates and short and long interest rates. It considers which equations changed the most and the most likely dates for any structural break.

Keywords: euro; structural-breaks; GVAR (search for similar items in EconPapers)
JEL-codes: C5 E5 F4 (search for similar items in EconPapers)
Date: 2019-08
New Economics Papers: this item is included in nep-cba, nep-eec, nep-mac, nep-mon and nep-opm
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https://eprints.bbk.ac.uk/28495/1/28495.pdf First version, 2019

Related works:
Journal Article: The Macroeconomic Impact of the Euro (2019)
Journal Article: The Macroeconomic Impact of the Euro (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:bbk:bbkcam:1903

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