Economics at your fingertips  

External Economies and European Integration: The Potential for Self-fulfilling Expectations

Richard Baldwin () and Richard Lyons ()

No 471, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: It is often suggested that "European economic and monetary integration is important because people think it is". This paper is an exploratory attempt to formalize this idea. As the basis for our investigation, we rely on recent analysis by Krugman (1989) and Matsuyama (1989), which addresses the process of equilibrium determination in a stylized economy in which more than one equilibrium is possible. As an additional dimension, we also address potential implications for unemployment using the unemployment hysteresis model of Blanchard and Summers (1986).

Keywords: European Integration; External Economics; Self-Fulfilling Expectations (search for similar items in EconPapers)
Date: 1990-10
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This working paper can be ordered from ... pers/dp.php?dpno=471

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

Page updated 2020-07-04
Handle: RePEc:cpr:ceprdp:471