Link to the University of Pittsburgh
Link to the University Library SystemContact us link
AEI Banner

Your Worlds are in my Wallet! The Impact of EU Summits on the Euro-Dollar Exchange Rate. ACES Cases No. 2006.1

Fahrholz, Christian H. and Schneider, Gerald (2006) Your Worlds are in my Wallet! The Impact of EU Summits on the Euro-Dollar Exchange Rate. ACES Cases No. 2006.1. UNSPECIFIED.

[img]
Preview
PDF
Download (749Kb) | Preview

    Abstract

    The introduction of the euro as legal tender in most member states of the European Union (EU) has further stimulated financial market integration in Europe and beyond. Yet, political manoeuvres have shaped – and sometimes threatened – this process. In this paper, we examine how the summit meetings of the European Union and events that are often considered to be ineffectual have influenced the ups and downs in the euro-dollar exchange rate. Using daily data, we show, with the help of a standard tool in financial econometrics, a GARCH model that summits decrease rather than increase the volatility of this series. Further event studies demonstrate that, while some summits have improved the standing of the European currency, the haggling over the Maastricht criteria at the Feira meeting has hurt the euro.

    Export/Citation:EndNote | BibTeX | Dublin Core | ASCII (Chicago style) | HTML Citation | OpenURL
    Social Networking:
    Item Type: Other
    Subjects for non-EU documents: EU policies and themes > Policies & related activities > economic and financial affairs > EMU/EMS/euro
    EU policies and themes > EU institutions & developments > institutional development/policy > decision making/policy-making
    Subjects for EU documents: UNSPECIFIED
    EU Series: UNSPECIFIED
    ["eprint_fieldname_eusries" not defined]: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > American Consortium on European Union Studies > ACES Cases
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 08 May 2009
    Page Range: p. 29
    Last Modified: 15 Feb 2011 18:01
    URI: http://aei.pitt.edu/id/eprint/9572

    Actions (login required)

    View Item

    Document Downloads