Should Sweden apply for an EMU membership?

Abstract: This paper examines the effect a membership in the EMU would have on the Swedish economy. This is done by using the synthetic control method where a synthetical Sweden is created and compared with actual Sweden. Synthetic Sweden is created by 11 donor pool countries, which are the 11 countries that joined the EMU in 1999. Using GDP per capita and Export as a percentage of GDP as dependent variables and other economic figures as explanatory variables between 1980-2020 are we able to understand how the Swedish economy would have developed if Sweden would have joined EMU in 1999. The results, in line with previous research, show that Sweden has benefited in terms of GDP per capita by staying outside of the EMU. But the results also display that Sweden would have a larger export if they were a part of the EMU. Because the Euro only has been used since 1999, only short- and medium-term results displayed, and not any long-term effects.