The Firm-Level Effects of European Monetary Unification

  title={The Firm-Level Effects of European Monetary Unification},
  author={Christopher B. Barrett and Wichai Turongpun},
Considers the likely microeconomic effects of European Monetary Union (EMU) and the European Central Bank (ECB), i.e. impact on firm‐level incentives and performance. Believes that firms’ uncertainty will be reduced by “a more stable and prudent macroeconomic environment”, and that a strong euro will lead to lower interest rates, reduced transaction costs, the elimination of exchange rate risk within the EMU and therefore increased output, investment and competition. Accepts that firms may find… CONTINUE READING

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