ABSTRACT
Doménech and Taguas (1999) analyse the effects on GDP growth of lower inflation, a shrinking public deficit and a more open Spanish economy resulting from economic and monetary integration in the EMU. They conclude that the long-term impact of EMU can be estimated to lead to a 3.3 percentage-point increase in the rate of private investment and a 10.4 per cent rise in per capita income.17 With regard to the latter variable, the largest effect is generated by the fall in inflation (some 4.5 per cent), followed by the correction of the public deficit (3.8 per cent), EU funding (1.7 per cent), and finally the degree of openness (0.4 per cent).
