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Oxford Economic Papers Advance Access originally published online on November 28, 2006
Oxford Economic Papers 2007 59(2):171-193; doi:10.1093/oep/gpl023
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Right arrow E31 - Price Level; Inflation; Deflation
Right arrow E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System
Right arrow E52 - Monetary Policy (Targets, Instruments, and Effects)
Right arrow E58 - Central Banks and Their Policies
Right arrow F33 - International Monetary Arrangements and Institutions
Right arrow F36 - Financial Aspects of Economic Integration
Right arrow F41 - Open Economy Macroeconomics
Right arrow F42 - International Policy Coordination and Transmission
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© Oxford University Press 2006 All rights reserved

The Euro and world inflation

George Selgin* and David VanHoose{dagger}

*Terry College of Business, University of Georgia, Athens, GA 30602, USA; e-mail: selgin{at}uga.edu
{dagger}Hankamer School of Business, Baylor University, One Bear Place, #98003, Waco, TX 76798, USA; e-mail: David_VanHoose{at}baylor.edu


  Abstract

This paper uses a three-region framework to examine the effects of European currency unification on EMU and US inflation rates. It considers ways in which increased participation in the EMU might influence inflation choices in Europe and the United States. It also considers how alternative monetary policies and parameter values might influence the extent of participation in the EMU.

Key Words: JEL classifications: E42 • E52 • E58 • F33 • F41


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