Following the disappointing quarter-onquarter GDP growth outcome of 1,3 per cent in the first quarter of this year, growth surprised on the downside when a contraction of 1,3 per cent was recorded. Of concern was the fact that it was broad-based across sectors, with only the finance, real estate and business services sector showing reasonable performance, recording growth of 2,7 per cent.
Euro banknotes are a popular means of payment and store of value in the EU’s neighbouring countries. What are the implications for the ECB and the euro area as a whole? I shall try to answer this question, drawing on the economic literature. There are two well-identified advantages that countries can obtain from having an international currency.