Researchers from Federal Reserve Board Describe Findings in Investment (Adopting the Euro: a Synthetic Control Approach): Investment

2024 JUL 03 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Data detailed on Investment have been presented. According to news reporting from Washington, District of Columbia, by NewsRx journalists, research stated, “We investigate whether joining the European Monetary Union and losing the ability to set monetary policy affected the economic growth of Eurozone countries. We use the synthetic control approach to create a counterfactual scenario for how each Eurozone country would have evolved without adopting the euro.”

Financial supporters for this research include Fundacao para a Ciencia e a Tecnologia (FCT), German Research Foundation (DFG), German Research Foundation (DFG).

The news correspondents obtained a quote from the research from Federal Reserve Board, “We let this matching algorithm determine which combination of other developed economies best resembles the pre-euro path of twelve Eurozone economies. Our estimates suggest that most countries’ economic growth was not significantly affected. There were some mild losers (France, Germany, Italy, and Portugal) and a clear winner (Ireland). The drivers of these economic gains and losses are heterogeneous. First, we find that Ireland’s economic gains are more modest when excluding profits and income earned by foreigners.”

According to the news reporters, the research concluded: “Second, our results show that adopting the euro spurred government consumption and trade and deterred private consumption and investment, on average.”

This research has been peer-reviewed.

For more information on this research see: Adopting the Euro: a Synthetic Control Approach. European Journal of Political Economy, 2024;83. European Journal of Political Economy can be contacted at: Elsevier Science Inc, Ste 800, 230 Park Ave, New York, NY 10169, USA. (Elsevier - www.elsevier.com; European Journal of Political Economy - http://www.journals.elsevier.com/european-journal-of-political-economy/)

Our news journalists report that additional information may be obtained by contacting Ricardo Duque Gabriel, Federal Reserve Board, Washington, DC 20551, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.ejpoleco.2024.102537. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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