Goldberg.

• Position: Conferences

The accession countries to the euro area increasingly are binding their economic activity--external and internal--to the euro area countries. One direction of this phenomenon concerns the currency invoicing of international trade transactions, by which accession countries have reduced their use of the U.S. dollar in invoicing international trade transactions. Theory predicts that the optimal invoicing choices for accession countries depend on the composition of goods in exports and imports and on the macroeconomic fluctuations of trade partners, both bearing on the role of herding and hedging considerations within...