The Firm-Level Effects of European Monetary Unification

Article Abstract:

Keywords: Trade Flows, Stable Currency, Transactions A large volume of literature has emerged debating the merits of impending monetary unification in the European Union (EU). By and large, these articles have been macro-oriented, concerned with economic stability and growth, financial markets, employment effects, and aggregate trade flows. This paper considers instead the likely effects of monetary unification on firm-level incentives and performance. It posits predictable differential effects across enterprises based on the sector of the economy in which they operate, their scale, scope, and domestic economy.

United States, Research, Finance

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The Firm-Level Effects of European Monetary Unification

Article Abstract:

The effects on the monetary union by the creation of the European Central Bank have largely been discussed from the macro-oriented viewpoint with very little said on firm-level incentives and performance. Strengthening the Euro will benefit European Union firms who deal with domestic goods and services. It will also reduce transactional costs and interest rates although banks will lose foreign currency exchange and trading business.

Laws, regulations and rules, Foreign exchange, Central banks, European Union. European Central Bank

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The Firm-Level Effects of European Monetary Unification

Article Abstract:

The introduction of the Euro as a single currency in the European market delivers optimal opportunities to European firms who are able to compete with British and American rivals. Commercial banks in Europe are likely to lose foreign currency exchange and trading business, while British and Asian companies face tough competition from American firms owing to the depreciating dollar.

Government regulation (cont), Brief Article, Interest rates, Foreign exchange market, Money market, Money markets

Similar abstracts:

• Abstracts: Macroeconomic Effects of Euro Implementation
• Abstracts: The Euro Impact on European Financial Markets. The Euro impact on European Financial Markets

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