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Archive for December, 2012

Costs of Euro Adoption

Funny how harshly time deals with economics textbooks sometimes.

From: Artis and Nixson, Eds, The Economics of the European Union. 2007.

Gains from Euro adoption come at the expense of relinquishing monetary policy as a stabilization tool. […] One early […] study for the fourt large EU-15 countries found that, in comparison with a free float, EMU would reduce […] output variability.

GDP per capita:

outputpercapita

growthrates

all data from Eurostat

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