European economic and monetary union, monetary policy, fiscal policy, counterfactual simulations

Interdependecy and the EMU Outsiders

This paper studies the expected impact of EMU membership on the non-EMU states in Northern Europe, and the economic interdependency of these states. It is often argued that once one of the non-EMU states joins EMU, pressure will increase upon the remaining ones to follow. This study considers the economic interdependency of the UK, Sweden and Denmark and assesses the extent to which a 'yes' vote by one actor will affect the decision making process in the other two states from an economic perspective.