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Ros Taylor

March 18th, 2016

The euro and the pound are closer than we might think

3 comments

Estimated reading time: 5 minutes

Ros Taylor

March 18th, 2016

The euro and the pound are closer than we might think

3 comments

Estimated reading time: 5 minutes

camposcorrado macchiarelliThe relationship between the countries in the EU that use the euro as their currency (‘euro-ins’) and those that do not (‘euro-outs’) is the most important of the four areas in the ‘new settlement’ between the UK and the EU, write Nauro F. Campos and Corrado Macchiarelli. This post presents new econometric estimates showing that, after the introduction of the euro, the UK and Eurozone business cycles became significantly more synchronised. It is likely this upsurge in synchronisation increased the costs of a potential UK exit from the EU.

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Ros Taylor

Posted In: Economics of Brexit | Featured

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