Open AccessCurrency Substitution And European Monetary Union
Author(s) -
Nikiforos T. Laopodis
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v14i4.5651
Subject(s) - cointegration , currency substitution , substitution (logic) , economics , currency , european union , monetary economics , european monetary union , error correction model , convergence (economics) , international economics , common currency , currency union , single currency , macroeconomics , devaluation , econometrics , monetary policy , computer science , programming language
Results from cointegration and error-correction models for testing the effects of currency substitution in Greece, Portugal and Spain, in light of their upcoming participation in the European Monetary Union, revealed no significant short- or long-run currency substitution behavior in any country, suggesting that joining the union now would offer them no real benefits, unless significant economic convergence is achieved.