One Market, One Money, One Price?

Nigel FB Allington, Paul A Kattuman and Florian A Waldmann

MPRA Paper from University Library of Munich, Germany

Abstract: The introduction of the euro was intended to integrate markets within Europe further, after the implementation of the 1992 Single Market Project. We examine the extent to which this objective has been achieved, by examining the degree of price dispersion between countries in the euro zone, compared to a control group of EU countries outside the euro zone. We also establish the role of exchange rate risk in hampering arbitrage by estimating the euro effect for subgroups within the euro zone, utilizing differences among EU countries in participation in the Exchange Rate Mechanism. Our results, in contrast with previous empirical research, suggest robustly that the euro has had a significant integrating effect.

JEL-codes: G0 G00 (search for similar items in EconPapers)
Date: 2005-03-21
New Economics Papers: this item is included in nep-eec, nep-ifn and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (57)

Published in International Journal of Central Banking Number 3.Volume(2005): pp. 73-115

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:835

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