Economics, Econometrics and Finance
4 years ago

European Union and EMU Boost Trade Significantly, Driving Economic Growth.

Federal Reserve Bank of San Francisco, Working Paper Series
Currency Unions and Regional Trade Agreements: EMU and EU Effects on Trade
Reuven Glick

Paper Summary

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The European Economic and Monetary Union (EMU) and European Union (EU) have significantly increased trade among member countries. EMU boosted trade by 40% for original members, while the EU increased trade by almost 70%. Newer members have seen even higher trade growth after joining the EU. More time is needed to fully understand the effects of joining EMU.