1 / 8

The Coming of the Euro

The Coming of the Euro. J. Bradford DeLong U.C. Berkeley and NBER http://www.j-bradford-delong.net/ delong@econ.berkeley.edu. A Tale of Two Continents. The unified United States A market of continental size Economies of scale and mass production

wmelody
Download Presentation

The Coming of the Euro

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Coming of the Euro J. Bradford DeLong U.C. Berkeley and NBER http://www.j-bradford-delong.net/ delong@econ.berkeley.edu

  2. A Tale of Two Continents • The unified United States • A market of continental size • Economies of scale and mass production • The “furnace where the future is being forged” • Divided Europe • Fewer economies of scale • Slower productivity growth

  3. Is Monetary Unification Really Such a Big Deal? • Probably not • Other differences between the United States and Europe • But perhaps… • National champions within Europe • Political goals to be served by monetary union • The Treaty of Maastricht

  4. Will the Euro Survive? • What will inflation be? • Who gets to borrow? • “Regional” recessions • Labor-market flexibility • Migration • Political unrest

  5. What Happens to the Dollar? • The reserve currency • The hegemon • “Exorbitant privilege” • Why Larry Summers doesn’t (yet) worry that the United States is a debtor nation

  6. The First Year of the Euro • Steady erosion of value • Pan-European monetary policy • A long-run reserve currency role? • The dollar, the yen, and the euro

  7. The First Year of the Euro

  8. The Dollar and the Yen

More Related