Was there Monetary Autonomy in Europe on the eve of EMU? The German Dominance Hypothesis Re-Examined

In this paper we re-examine the German dominance hypothesis, as a way to assess whether the loss of monetary autonomy in Europe associated with EMU had been significant. We use Granger-causality tests between the interest rates of Germany and all the countries participating in the European Monetary System, with the sample period running until December 1998. Our results would support a weak version of the hypothesis, with Germany playing a certain "leadership" or special role in the EMS, although she would not have been strictly the "dominant" player.


Issue Date:
2002-11
Publication Type:
Journal Article
DOI and Other Identifiers:
Print ISSN 1514-0326 (Other)
Online ISSN 1667-6726 (Other)
PURL Identifier:
http://purl.umn.edu/44077
Published in:
Journal of Applied Economics, Volume 05, Number 2
Page range:
185-207
Total Pages:
26
JEL Codes:
F33; F36; E50




 Record created 2017-04-01, last modified 2017-08-25

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