Symmetry or Asymmetry in European Dollar Policies?

Evidence from the Core Countries
  • Lilia Cavallari
  • Giuseppe De Arcangelis


As of 1 January 1999, the introduction of the euro has brought about the definite vanishing of independent fluctuations in the national European ex­change rates with the US dollar. As a consequence, the economies in the European Monetary Union (EMU) have given up a potential means for ab­sorbing asymmetric shocks not only inside EMU, but also with the rest of the world. In other words, a unique euro-dollar exchange rate is less likely to manage shocks between the two sides of the Atlantic that spread asymmetri­cally across Europe.


Exchange Rate Real Exchange Rate Impulse Response Function European Monetary Union Nominal Exchange Rate 
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Copyright information

© Springer Science+Business Media New York 2001

Authors and Affiliations

  • Lilia Cavallari
    • 1
  • Giuseppe De Arcangelis
    • 2
  1. 1.University of Rome “La Sapienza”Italy
  2. 2.University of BariItaly

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