Bulletin n. 2/2008 | ||
September 2008 | ||
Weyerstrass Klaus, Neck Reinhard |
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Macroeconomic effects of Slovenia’s integration in the Euro Area | ||
in Empirica: Journal of Applied Economics and Economic Policy , Volume 35, Number 4 , 2008 , 391-403 | ||
On 1 January 2007, Slovenia entered the Euro Area as the first of the ten new EU member states. By means of simulations with SLOPOL6, a macroeconometric model of the Slovene economy, this paper examines which macroeconomic effects can be expected from this event. It is shown that Euro Area accession brings about temporarily higher real GDP growth, a permanently higher GDP level, more employment, temporarily lower inflation and a permanently lower price level. On the other hand, both public finances and the current account deteriorate. | ||