Journal Article

Is the EMU a viable common currency area? a VAR analysis of regional business cycles

Abstract: Many commentators are skeptical about the long-run viability of the European Monetary Union (EMU). This article compares the EMU with a well-functioning currency union, the U.S., and finds that they are similar based on key criteria. On the basis of this analysis, the EMU may be as viable as the U.S. monetary union.

Keywords: Euro; Euro-dollar market; European Monetary System (Organization); Vector autoregression; Business cycles;

Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Economic Perspectives

Publication Date: 1999

Volume: 23

Issue: Q IV