IDEAS home Printed from https://ideas.repec.org/a/zag/zirebs/v2y1999i2p25-98.html
   My bibliography  Save this article

The Euro and Its Benefits: Trade in Hard and in Soft Currencies

Author

Listed:
  • Pan A. Yotopoulos

    (Stanford University)

  • Donato Romano

    (University of Florence)

Abstract

The introduction of the euro is a momentous event that has important implications for the world, for Europe, and also for the world. Protectionism in Europe in its various forms is being given a final blow with the introduction of the common currency that, for the first time, will lead to genuine convergence in prices. The abolition of the internal foreign exchange borders has profound effects for competitiveness and trade. It entails more freedom for Euroland’s producers to swim competitively – and especially to sink. What looks like a more self-sufficient (or ‘closed’) Euroland is in effect an open domestic market that has converted into domestic-currency transactions what previously constituted international trade involving foreign exchange. This conversion is uniquely beneficial for the partners that previously had the relatively softer currencies. Finally, the benefits to the EMU partners multiply and spill over to the global level as the euro becomes a strong, and potentially a parallel resere currency.

Suggested Citation

  • Pan A. Yotopoulos & Donato Romano, 1999. "The Euro and Its Benefits: Trade in Hard and in Soft Currencies," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 2(2), pages 25-38, November.
    • Handle: RePEc:zag:zirebs:v:2:y:1999:i:2:p:25-98
    as

    Download full text from publisher

    File URL: http://www.efzg.hr/default.aspx?id=2697
    Download Restriction: Abstract only available on-line
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Monetary union; euro; hard/soft currencies; financial crises;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zag:zirebs:v:2:y:1999:i:2:p:25-98. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jurica Šimurina (email available below). General contact details of provider: https://edirc.repec.org/data/fefzghr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.