Abstract
With the transition to the euro, exchange rate volatility between the countries participating in European Monetary Union has been eliminated, reducing uncertainty and transaction costs. The other side of the coin is the loss of the exchange rate as a potential mechanism of adjustment to external shocks. The present article uses the case of Germany to study the implications of EMU for labour markets.
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References
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This research was undertaken with support from the Deutsche Post-Stiftung (German Mail Foundation) in the project ‘Arbeitsmarkt-effekte der Europäischen Währungsunion’ (Labour Market Effects of European Monetary Union). Helpful comments from our colleagues Thiess Büttner and Friedrich Heinemann are gratefully acknowledged. We are also indebted to Ingo Sänger for excellent research assistance. All remaining errors are our own.
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Stirböck, C., Buscher, H.S. Exchange rate volatility effects on labour markets. Intereconomics 35, 9–22 (2000). https://doi.org/10.1007/BF02927896
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DOI: https://doi.org/10.1007/BF02927896