Regional currency union boosts trade in select European regions, study finds.
This study looks at how using a single currency affects trade between different regions in Europe. The researchers studied trade between Spanish regions and other European countries from 1997 to 2004. They found that regions more open to trade benefited more from sharing a currency. Over time, the positive effects of using a single currency on trade decreased. The study showed that when exchange rate volatility was high, the impact of a single currency on trade was very small.