Description:
The creation of the European Central Bank and the Euro have brought new challenges to EU integration and economic policy. This book looks into issues ofmonetary and factor market policies. The analysis also presents new theoretical and empirical research on the - transitory - decline of the Euro. Issues of exchange rate policy and international economic relations also are addressed. Contents: European Monetary Union: Start of the Euro and the Need for Complementary Measures in Euroland: Introduction.- The Single Market, Growth Perspectives and Welfare Effects of the Euro.- Price Competition, Real Interest Rates and Investment under EMU.- Transmission Channels of Monetary Policy.- EMU, Capital Markets and Growth of New Firms.- Relative Prices, Factor Rewards and Real Convergence.- Labor Markets, Mobility and Unemployment.- Implications for Economic Policies and Budget Consolidation.- Looming EU Protectionism?.- Real Exchange Rate Aspects.- Summary and Conclusions.- AppendixA.- Modern Exchange Rate Theory and Schumpetrian Economic Analysis:New Approach and Application to the Euro: Introduction.- Exchange Rate Analysis in the Short and Long Run: A New Approach.- Conclusions.- AppendixB.- Exchange Rate Policy for the Euro: Theory, Strategic Issues andPolicy Options: Introduction.- Exchange Rate Regimes and Exchange Rate Policies.- The EMS Mark II.- Summary and Conclusions.- Appendix C.