Explaining the EURO's Initial Decline

Philip Arestis, Iris Biefang-Frisancho, Andrew Brown and Malcolm Sawyer
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Andrew Brown: Leeds Univesrity
Malcolm Sawyer: Leeds Univesrity

Eastern Economic Journal, 2002, vol. 28, issue 1, pages 71-88

Abstract: This paper argues that the inception of the euro itself, with its restrictive monetarist institutional structures, to an area which is in a divergent state, which has recently been widened by a process of divergence, is ample reason for long term investors, and, indeed, post-"euphoric", short term speculators, to regard the euro area as structurally weaker since January 1999. It is difficult to predict the fixture course of the euro; once portfolio investors have shifted fully back to their pre-"euphoria" level of holdings of euros, then any number of contingencies may come into play.

JEL-codes: E52 F36 E42 F33 (search for similar items in EconPapers)
Date: 2002
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