Currency unions boost trade by 45%, but lag behind trade agreements.
The euro's introduction led to a lot of interest in how currency unions affect trade. Previous estimates suggested a big increase in trade, but newer studies show it's more like 30-90%. By looking at more data and addressing previous criticisms, researchers found that currency unions increase trade by around 45%. However, the impact varies between different unions and is generally lower than trade agreements. This new benchmark can help future studies compare their results to see how they differ.