Citation:
Alesina, Alberto. 2010. Europe and the Euro (National Bureau of Economic Research Conference Report). University of Chicago Press. Copy at http://www.tinyurl.com/yyqqpw9z
Abstract:
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.