Evaluate the arguments for and against UK entry into the eurozone.
Claire Reilly The New Europe: Understanding the European Union -Evaluate the arguments for and against UK entry into the eurozone. The debate over the United Kingdom's involvement in the eurozone has been prominent ever since the British government decided to withhold UK entry until a later date. Although the euro only became a physical reality across Europe on 1 January 2002, it has been years in the making. The development of the euro dates back to the Treaty of Rome in 1957, when a common European market was declared as a European objective, aiming to increase European prosperity and develop an even closer relationship amongst the peoples of Europe. Following agreements such as The Single European Act (1986) and the Treaty on European Union (1992), the European Monetary Union, EMU, has been introduced, laying the foundations of the single currency. The European Central Bank (ECB) was established on 1 June 1998. It is based in Frankfurt am Main, Germany, and aims to maintain price stability and to conduct a single monetary policy across the euro area. This is done through its own activities and through working with the national central banks. Together, the ECB and the euro area national central banks are known as the Eurosystem. On January 1 2001, the exchange rates of the participating countries were irreversibly set. Member states implemented a common monetary
What are the Problems and Possibilities of Economic Monetary Union?
What are the Problems and Possibilities of Economic Monetary Union? European Monetary Union (EMU) was first introduced in 1969 at a summit of the European Economic Community in The Hague, the members arranged to endeavour and reduce the fluctuations in their currencies in order to coordinate national policies. 1 (McCormick). Jacques Delores, in 1989 as the president of the Commission decided to introduce a 3 stage plan designed to increase the movement towards EMU, the plan attempts to fix exchange rates and introduce a single currency, the Euro. This plan was not completed until 2002 when the Euro coins and notes began circulating. In order for members of the European Union to join the Euro they were subject to convergence criteria, which confined the levels of government debt and national debt, inflation rates, exchange rates and interest rates the member country is allowed to have. Converging to these criteria and adopting the Euro has provided many different outcomes, some of which are negative and other which will benefit the economies of the member countries. This essay shall examine the problems and possibilities of European Monetary Union in order to determine whether EMU is beneficial to all that have taken part, and to discover where Economic Monetary Union is headed. In order to be part of the Economic Monetary Union, the member countries adopted the Euro
Introductory econometrics assignment. The reasons for creating these two relative price variables is to demonstrate the impact of relative price changes of no.2 and no.3 canned tuna to the unit sales of brand no.1 canned tuna. As a result of that no.2 an
INTRODUCTORY ECONOMETRICS ASSIGNMENT PART 1 a. By using 'Genr' function from eview, to generate two new relative price variables: RPRICE 2 = APR1/APR2 and RPRICE3 = APR1 / APR3. The reasons for creating these two relative price variables is to demonstrate the impact of relative price changes of no.2 and no.3 canned tuna to the unit sales of brand no.1 canned tuna. As a result of that no.2 and no.3 canned tuna are the substitute goods of no.1 canned tuna. Dependent Variable: LOG(SAL1) Method: Least Squares Date: 10/20/11 Time: 23:05 Sample: 1 52 Included observations: 52 Variable Coefficient Std. Error t-Statistic Prob. C 0.27575 0.518528 9.81716 0.0000 RPRICE2 -1.858067 0.513899 -3.615630 0.0007 R-squared 0.207265 Mean dependent var 8.437187 Adjusted R-squared 0.191410 S.D. dependent var 0.813654 S.E. of regression 0.731651 Akaike info criterion 2.250676 Sum squared resid 26.76564 Schwarz criterion 2.325723 Log likelihood -56.51756 Hannan-Quinn criter. 2.279447 F-statistic 3.07278 Durbin-Watson stat .353070 Prob(F-statistic) 0.000696 b. The table above shows the result of estimate function: . is equalled to -1.858067, which means one unit change in RPRICE2 or the relative price change of no.1 and no.2 canned tuna will result in -1.858067 % change in SAL1 or unit sale of no.1 canned tuna. Also, the 95% confidence