Klaus Weyerstrass, Reinhard Neck
Macroeconomic Effects of Slovenia's Integration in the Euro Area
in: Economic Policy Problems in the European Union. Selected Papers from the 2007 Annual Meeting of the Austrian Economic Association
Empirica, 2008, 35(4), S.391-403, http://www.springer.com/10663
 
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.
Keywords:Euro Area, Macroeconometric model, Slovenia
Forschungsbereich:Makroökonomie und öffentliche Finanzen
Sprache:Englisch