There was monetary autonomy in Europe on the eve of EMU?. The German dominance hypothesis reexamined

• Autores: Oscar Bajo Rubio, María Dolores Montávez Garcés
• Localización: Documentos de Trabajo ( Universidad Pública de Navarra. Departamento de Economía ), Nº. 6, 1999
• Idioma: inglés
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• Resumen

  • In this paper we re-examine the German dominance hypothesis, as a way to assess whether the loss of monetary autonomy in Europe associated with EMU had been significant. We use Granger-causality tests between the interest rates of Germany and all the countries participating at any time in the European Monetary System, with the sample period running until December 1998. Our results would support a weak version of the hypothesis, with Germany playing a certain �leadership� or special role in the EMS, although she would not had been strictly the �dominant� player.