The Effects of European Monetary unio‎n on Macroeconomic Performance

The purpose of this study is to show the effect of monetary unio‎n on macroeconomic performance for 24 OECD countries during the period 1988-2009. According to the findings, the European Monetary unio‎n has a positive effect on foreign trade. On the other hand, it has a negative effect. The monetary unio‎n set up without a financial unio‎n has a negative effect on macroeconomic performance by limiting the implementations of policy makers even if it has a positive contribution on trade. Thus, monetary policy implementations not supported with financial policy have a negative effect on macroeconomic performance.