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This is the first book to investigate how the Euro has affected trade, financial markets, macroeconomic policy making and Europe's economic performance since it came into operation in January 1999.

• Features eight studies by leading European and North American economists.
• Covers topics such as inflation measurement, price stability, fiscal policies and monetary policy.
• Also looks at economic conditions and prospects outside the Eurozone.
• Presents essential information in non-technical language.

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Table of Contents

Introduction.
1. Policy Challenges of Euro Area Enlargement: Lucas Papademos.
2. The Currency Union Effect on Trade: Early Evidence from EMU: Alejandro Micco, Ernesto Stein and Guillermo Ordonez.
3. Divergent Inflation Rates in EMU: Patrick Honohan and Philip R. Lane.
4. Inflation Measurement and the ECB's Pursuit of Price Stability: A First Assessment: Stephen G. Cecchetti and Mark A. Wynne.
5. The Execution of Monetary Policy: A Tale of Two Central Banks: Leonardo Bartolini and Alessandro Prati.
6. Monetary Transmission in the Euro Area: Early Evidence: Ignazio Angeloni and Michael Ehrmann.
7. Yield Spreads on EMU Government Bonds: Lorenzo Codogno, Carlo Favero and Alessandro Missale.
8. Fiscal Policy and Monetary Integration in Europe: Jordi Galí and Roberto Perotti.
9. Life on the Outside: Economic Conditions and Prospects Outside Euroland: David Barr, Francis Breedon and David Miles.

About the Authors

Richard Edward Baldwin is Professor of International Economics at the Graduate Institute of International Studies, Geneva.

Giuseppe Bertola is Professore Ordinario di Economica Politica, Facolta di Scienze Politiche, Universita di Torino.

Paul Seabright is Professor of Economics at Université des Sciences Sociales de Toulouse, a Director of Research at the Institut d'Economie Industrielle and a Research Fellow at CEPR.

320 pages