The Asymmetric Effects Of Euro On Germany 's Import And Export

Different from the currency union increasing the trade between EU countries by decreasing transaction cost and uncertainty, using the gravity model we find that the Euro didn’t significant increase even decrease Germany’s import volume when it expanded the export volume, which benefited Germany in trade. What happened above is because the Euro had a depreciation effect;on Germany’s currency. In other words, the Euro is beneficial to Germany. To re-examine Germany’s performance in the European debt crisis, its action slightly looked hesitating. However, considering the tremendous gains from the euro, we will be sure that Germany will try to rescue the countries in the crises in order to maintain the stability of the euro, which is to say, Germany has the "bottom line". At the same time, the unionization of European currencies sheds some lights on China. We can do our best to realize in Internationalization of RMB, promoting the degree of regional economic integration, reducing trade friction with other countries and promoting domestic market integration.