115-147

• Kallianiotis, Ioannis N.
• Petsas, Iordanis

The paper examines the interdependence in three different markets (goods, money, and foreign sectors) between the U.S. and the EU. A theoretical open economy macroeconomic model is used for the analysis and tested with data from the two entities. The results show that there is a tremendous economic interdependence between the U.S. and the EU, but the social and political influences from the U.S. overshadow the economic ones. Both entities face serious problems, like deficits and unemployment and at the same time loss of competitiveness and heterogeneity in their own countries. The current trend of inconsiderate integration and internationalization will hurt the citizens in Europe, first, and in America soon.

• Economics and Business
• Computer and information sciences

• Οικονομία
• Macroeconomics
• Statistics

estimation, time-series models, forecasting and other model applications, open economy macroeconomics, international policy coordination

Περιέχει παράρτημα πινάκων, σημειώσεις και βιβλιογραφία, A version of this paper has been presented at the International Symposium on Economic Theory, Policy and Applications of the Athens Institute for Education in Athens, Greece, August 21-23, 2006 and we would like to thank the participants for their comments. Also, we would like to acknowledge the help provided by our research assistants Keith Brady and Arati Gandhi. Financial support (travel expenses) from Henry George Research Funds (Robert Schalkenbach Foundation) is gratefully acknowledged, too. The usual disclaimer applies.