The Effects of European Monetary Union on Macroeconomic Performance

Yıl 2012, Cilt: 11 Sayı: 2, 26 - 47, 01.04.2012

Durmuş Çağrı Yıldırım

Öz

The purpose of this study is to show the effect of monetary union on macroeconomic performance for 24 OECD countries during the period 1988-2009. According to the findings, the European Monetary Union has a positive effect on foreign trade. On the other hand, it has a negative effect. The monetary union set up without a financial union has a negative effect on macroeconomic performance by limiting the implementations of policy makers even if it has a positive contribution on trade. Thus, monetary policy implementations not supported with financial policy have a negative effect on macroeconomic performance.

Anahtar Kelimeler

Monetary Union, European Union, Panel OLS, Gravity Model, Macroeconomic Performance.