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This thesis investigates the cause and implications of the divergent inflationrates of the EMU-12 countries between the years 1998 and 2010. The EMUand the euro are put into a context with the classic theory of Optimum CurrencyArea, where the economic benefits and cost of joining a monetary unionis reviewed. The inflation divergence in the euro area is then described and investigated.Empirically, a Phillips Curve model is constructed in order to determineif the EMU-12 nations’ inflation rates are equally sensitive to changesin unemployment as the EMU average. This is done using a Panel Least Squareestimation for the EMU-12. Each nation is then tested separately against theEMU average. The result provides evidence that the EMU-12 nations’ inflationrates are not equally sensitive to changes in unemployment as the EMU average.The result is negative for the EMU-12 in an Optimum Currency Area context.Given the results, the EMU-12 cannot be considered to be an OptimumCurrency Area, at least not yet.

Den 1 januari 1999 bildade elva länder (Belgien, Finland, Frankrike, Italien, Irland, Luxemburg, Nederländerna, Portugal, Spanien, Tyskland och Österrike) en europeisk valutaunion, det som också kallas euroområdet. Grekland anslöt sig, som en tolfte och ny deltagare, i januari 2001. Även om Sverige, Danmark och Storbritannien inte deltar från start har det varit klart att EMU kommer få konsekvenser för olika sektorer. Frågorna som behandlats i detta arbete är följande: Har EMU haft en effekt på de finansiella marknaderna i de länder som är med i valutaunionen? Har Sveriges, Storbritanniens och Danmarks finansiella marknader förändrats på samma sätt som i de länder som är med i EMU, fast dessa länder står utanför? Syftet med detta arbete är att analysera de finansiella marknaderna, genom beräkningar av vissa kända finansiella variabler, i de länder som deltar i valutaunionen och tre länder som står utanför (Sverige, Danmark och Storbritannien). Detta för att se om de finansiella marknaderna har påverkats av EMU och hur de har påverkats i och med inträdet. De variabler som behandlats är; β-värdet, för att se om länderna går mot en gemensam marknadsrisk. Sharpe måttet, för att se om riskjusteringen (premie) över den riskfria räntan går mot samma nivå i länderna i och utanför valutaunionen. Korrelationen, för att se om länderna korrelerar med varandra, i och utanför EMU. Efter analyser av variablerna, med hjälp av regressioner och andra tester, har vi dragit en generell slutsats att EMU inte haft någon stor effekt på de finansiella marknaderna i EMU länderna och inte heller i de tre som står utanför EMU.

In 2002, the euro as a common currency did replace the national currencies in the EU member-states that did choose to take part in the EMU. It was then viewed as one of the greatest accomplishments ever to be made by the EU. However, during the latest years, the economic situation has deteriorated in several EMU member-states. This affected the whole euro-area and the current situation is referred upon as the euro-crisis. In 2011, at the time of the euro-crisis, the Heads of State or Government of the euro-area did reaffirm their full commitment to strengthen EMU. This essay seeks to answer why the EMU is maintained despite severe economical difficulties. The purpose of this essay is to reveal that path dependence is seen in the EU decision-making about the EMU. To fulfill the purpose the method used is process-tracing. To study the EU decision-making this essay applies the theoretical framework provided by Allison and Zelikow. This theoretical framework studies decision-making from three different vantage points. The findings of this essay reveal that in each vantage point an institution can be found that shape behavior and results in path dependence.

<p>This thesis investigates in what way trade flows in Europe have been altered and differ for countries belonging to a preferential trade agreement as well as a common currency area. More specifically, how exports among the European countries are affected by memberships with the European Union and the EMU. A total of 72 countries have been chosen which represents the main trading partners between the EU and the rest of the world. Out of these 72 countries, 25 represent EU members which include 12 EMU member countries.</p><p>The econometric analysis employ a gravity model with 18 variables in order to determine their impact on trade flows. This is done through a regression with a log-log equation where the dependent variable is export. The other variables included are chosen to explain export flows among the EU members as well as their trade with EMU countries and the rest of the world. Furthermore, variables representing trade affinities are included to determine whether or not they have a significant effect on trade.</p><p>The regression is divided into four time periods in order to more easily determine how the trade pattern in Europe have altered from the establishment of the EU and the EMU. The first time period represent an early state of EU membership, the second a mature state of EU membership, the third when EU was reformed and the fourth an early state of EMU membership.</p><p>The regression results illustrate that the majority of the selected variables are significant but most importantly that the trade affinity variables are proven to have an impact on trade flows. The results also show that trade has increased and that in the case of EU membership it is more profitable to join than to remain outside. Moreover, the result show in par-ticular that countries that belong to the EMU have a stronger orientation of their exports to the rest of the world then other EU countries. For the latter, the European market is of prime importance.</p>

<p>This bachelor thesis examines the convergence properties of inflation rates of the Euro-pean Monetary Union (EMU) countries over the period 1992 to 2007. The period can be naturally split into two periods, according to the Maastricht Treaty and the introduction of the Euro. Since countries were striving to meet the Maastricht inflation criterion for 1997 we will analyse inflation behaviour of the pre-Euro period (1992 to 1997) and post-Euro period (1998 to 2007), in order to see whether each country’s inflation rates have con-verged to the calculated mean of the sample. To analyse the issue we used CPI inflation rate data from IMF Statistical Database over the period 1992 to 2007.</p><p>We study convergence by means of ADF unit-root tests, Engle-Granger cointegration tests and Johansen cointegration tests. These are complemented with descriptive statistics that measure dispersion of inflation rates within the EMU.</p><p>The conclusion to the research problem can be summaries as follows: Our analysis pre-sents clear evidence of reduction in inflation rate dispersion for the period 1992 to 1997, indicating that the Maastricht Treaty had a major impact on the convergence of inflation rates within the EMU for that period. However, we found that only two countries, Austria and Portugal, had a cointegration relationship with the average rate of inflation of the other countries in the sample. For the period 1998 to 2007, the descriptive statistics indicated that the introduction of the Euro resulted in a divergence of inflation rates within the EMU. Those results were further strengthened by the fact that no cointegration relation-ship was found for that period.</p>

<p>Den 1 januari 1999 bildade elva länder (Belgien, Finland, Frankrike, Italien, Irland, Luxemburg, Nederländerna, Portugal, Spanien, Tyskland och Österrike) en europeisk valutaunion, det som också kallas euroområdet. Grekland anslöt sig, som en tolfte och ny deltagare, i januari 2001. Även om Sverige, Danmark och Storbritannien inte deltar från start har det varit klart att EMU kommer få konsekvenser för olika sektorer.</p><p>Frågorna som behandlats i detta arbete är följande:</p><p>Har EMU haft en effekt på de finansiella marknaderna i de länder som är med i valutaunionen?</p><p>Har Sveriges, Storbritanniens och Danmarks finansiella marknader förändrats på samma sätt som i de länder som är med i EMU, fast dessa länder står utanför?</p><p>Syftet med detta arbete är att analysera de finansiella marknaderna, genom beräkningar av vissa kända finansiella variabler, i de länder som deltar i valutaunionen och tre länder som står utanför (Sverige, Danmark och Storbritannien). Detta för att se om de finansiella marknaderna har påverkats av EMU och hur de har påverkats i och med inträdet.</p><p>De variabler som behandlats är; β-värdet, för att se om länderna går mot en gemensam marknadsrisk. Sharpe måttet, för att se om riskjusteringen (premie) över den riskfria räntan går mot samma nivå i länderna i och utanför valutaunionen. Korrelationen, för att se om länderna korrelerar med varandra, i och utanför EMU.</p><p>Efter analyser av variablerna, med hjälp av regressioner och andra tester, har vi dragit en generell slutsats att EMU inte haft någon stor effekt på de finansiella marknaderna i EMU länderna och inte heller i de tre som står utanför EMU.</p>

This bachelor thesis examines the convergence properties of inflation rates of the Euro-pean Monetary Union (EMU) countries over the period 1992 to 2007. The period can be naturally split into two periods, according to the Maastricht Treaty and the introduction of the Euro. Since countries were striving to meet the Maastricht inflation criterion for 1997 we will analyse inflation behaviour of the pre-Euro period (1992 to 1997) and post-Euro period (1998 to 2007), in order to see whether each country’s inflation rates have con-verged to the calculated mean of the sample. To analyse the issue we used CPI inflation rate data from IMF Statistical Database over the period 1992 to 2007. We study convergence by means of ADF unit-root tests, Engle-Granger cointegration tests and Johansen cointegration tests. These are complemented with descriptive statistics that measure dispersion of inflation rates within the EMU. The conclusion to the research problem can be summaries as follows: Our analysis pre-sents clear evidence of reduction in inflation rate dispersion for the period 1992 to 1997, indicating that the Maastricht Treaty had a major impact on the convergence of inflation rates within the EMU for that period. However, we found that only two countries, Austria and Portugal, had a cointegration relationship with the average rate of inflation of the other countries in the sample. For the period 1998 to 2007, the descriptive statistics indicated that the introduction of the Euro resulted in a divergence of inflation rates within the EMU. Those results were further strengthened by the fact that no cointegration relation-ship was found for that period.

The 2008/2009 world financial crisis, as well as the 2010 onwards European sovereign debt crisis, retriggered the debate on costs and benefits of a European Monetary Union membership. This thesis examines whether Sweden experienced net costs or benefits in opting out the EMU, especially in comparison to Finland due to the close link between both economies, as well as cultural and geographical similarities. While both countries were drawing a convergent economic path from the 1990’s, in 1999, with the Euro adoption in Finland, the two Scandinavian economies chose different tracks in terms of monetary policies. Sweden opted to remain outside the EMU and maintain the floating exchange rate and the control of domestic monetary issues, while Finland chose to relinquish monetary policy autonomy and started to follow the rules and constraints of the European Central Bank. Furthermore, the paper analyzes the economic development of UK in comparison with France, due to the approximate size of both economies (one EMU member and the other an outsider), and also Germany, the EMU leader, and the Euro area as a whole. The data base from Eurostat and the Synthetic Counterfactual Method have shown that there were net benefits for Sweden not to had joined the EMU. Moreover, the paper presents the Theory of Optimum Currency Area, first introduced by Mundell in 1961 as the starting point on the discussion of costs and benefits of an EMU membership.

Correct number and pattern of digits is determined in a time and concentration-dependent manner by a gradient of Sonic Hedgehog (SHH) across the anterior-posterior axis of the embryonic limb bud. Owing to the potent morphogenic/mitogenic capabilities of SHH, transcription of the SHH gene in the limb is tightly regulated by feedback loops with other signalling pathways and by the Zone of Polarising Activity regulatory sequence (ZRS). The ZRS is a long-range, cis-regulatory limb-specific enhancer of SHH, and is essential for correct limb SHH expression. The Silkie, a polydactylous breed of chicken, possesses a C > A mutation in the ZRS, resulting in ectopic SHH expression in the anterior limb and hindlimb-specific polydactyly. We employ the Silkie mutant to investigate how SHH is regulated by the ZRS, and how Hedgehog signalling can modulate SHH expression in an autoregulatory manner. We further characterise the effects that the Silkie mutation has on subsequent limb development; investigating the dependence of increased posterior SHH, increased Hedgehog-dependent growth and necessary genotype in both the posterior and anterior limb bud. Several fundamental questions regarding SHH during limb development have yet to be fully addressed: how much SHH protein is present, and does it form a gradient as hypothesised by Wolpert’s Morphogen Gradient Model? By developing a standard curve-based method to assess absolute quantities of processed SHH protein, N-SHH, we find that the quantity of N-SHH protein increases through limb development, and does indeed form a quantifiable gradient across the posterior limb. By comparing quantity of N-SHH protein in equivalently staged mouse, rat, emu and chicken limbs, we find that there is no significant link between N-SHH protein quantity and digit number between mammalian and avian species, and investigate how digit number is modulated in the late limb. A number of species exhibit reduced numbers of digits, including the wings of the emu, cassowary and kiwi. Unlike in mammalian examples of digit loss (i.e. cow, pig) the emu wing has delayed and significantly reduced SHH expression. Through sequencing and functional in vivo testing of ZRS sequences of ratite bird species, we investigate whether the ZRS has a role in evolutionary digit loss. We also demonstrate the aspects of digit loss and Hh signalling are shared with examples of mammalian digit loss. This thesis presents novel research into multiple aspects of genetic regulation, limb development, and evolutionary developmental biology; elucidating both long held dogmas and upcoming areas of limb development.