The Euro Experience and Lessons for Latin America

It is natural to think, and economic theory predicts, that integration in an economic zone like Europe fosters growth and development, particularly when integration refers to trade opening among countries. It is expected that openness (to trade) promotes growth and being closed (to trade) deters it. Trade theory also concludes that (trade) integration is beneficial to all countries, large and small, and that small economies are likely to benefit relatively more from integration. This note reviews the development of the European Union's euro zone and its impacts on growth and finds lessons that can be useful for Latin America.

Bibliographic Details

Main Author:	Hurtado, Carlos
Format:	Brief biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2012-10
Subjects:	ACCOUNT DEFICITS, AGGREGATE EXPENDITURE, AGGREGATE EXPENDITURES, ASSETS, BALANCE SHEETS, BANKING UNION, BANKRUPTCY, BANKRUPTCY LAWS, BOND, BOND YIELDS, BONDS, BUDGET AUTHORITY, CAPITAL FLOWS, CAPITAL INFLOWS, CAPITAL LOSSES, CENTRAL BANK, COMMODITY, COMMON CURRENCY, COMPETITIVENESS, COST REDUCTIONS, CREDIBILITY, CREDIT MARKETS, CROSS-BORDER TRANSACTIONS, CURRENCY ZONE, CURRENT ACCOUNT, CURRENT ACCOUNT BALANCE, CURRENT ACCOUNT DEFICITS, DEBT OF COUNTRIES, DEBT OVERHANGS, DEBTS, DECISION MAKING, DEVELOPMENT BANK, DOMESTIC CURRENCY, DUTCH DISEASE, ECONOMIC DOWNTURN, ECONOMIC GROWTH, ECONOMIC OUTLOOK, ECONOMIC POLICY, ECONOMIC THEORY, EMERGING ECONOMIES, EURO ZONE, EXPENDITURE INCREASE, EXPENDITURES, EXPORTS, FINANCIAL CRISIS, FINANCIAL MARKETS, FINANCIAL SECTOR, FISCAL ACCOUNTS, FISCAL ADJUSTMENT, FISCAL BALANCE, FISCAL DEFICITS, FISCAL POLICIES, FISCAL SUSTAINABILITY, FIXED EXCHANGE RATE, GDP, GDP PER CAPITA, GROSS DOMESTIC PRODUCT, GROSS NATIONAL PRODUCT, ILLIQUIDITY, INCOME, INDEBTEDNESS, INDIVIDUAL CURRENCY, INFLATION, INTEREST RATES, INTERNATIONAL ECONOMICS, INVESTMENT EXPENDITURE, JUDICIAL SYSTEMS, LENDER, LENDER OF LAST RESORT, LIQUIDITY, LIQUIDITY PROBLEMS, LOSS OF COMPETITIVENESS, MONETARY UNION, NET PUBLIC DEBT, NOMINAL DEVALUATION, PENSION, PENSION REFORM, PENSIONS, PER CAPITA INCOME, POVERTY REDUCTION, PRIVATE DEBT, PROPERTY RIGHTS, PUBLIC DEBT, PUBLIC EXPENDITURE, PUBLIC FINANCES, PURCHASING POWER, PURCHASING POWER PARITY, QUALITY OF EDUCATION, REAL DEPRECIATION, REAL ESTATE, REAL EXCHANGE RATE, REAL EXCHANGE RATE APPRECIATION, REAL GDP, REAL INCOME, RECESSION, RETURN, SLOW GROWTH, SMALL ECONOMIES, SOCIAL SECURITY, SOCIAL WELFARE, SOVEREIGN DEBT, SOVEREIGN RISK, STRONG CAPITAL INFLOWS, STRUCTURAL DEFICIT, STRUCTURAL PROBLEMS, SUPERVISION MECHANISMS, SURPLUSES, TAX, TAX REGIMES, TERMS OF CAPITAL, TRADABLE GOODS, TRADE INTEGRATION, TREASURY, UNCERTAINTY, UNEMPLOYMENT, WAGES, WORLD ECONOMY,
Online Access:	http://documents.worldbank.org/curated/en/2012/10/16818700/euro-experience-lessons-latin-america http://hdl.handle.net/10986/17077
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