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The "uncovered inflation rate parity" condition in a monetary union

Acocella, Nicola; Pasimeni, Paolo - 2018

), the problem of instability is simply transferred to inflation rate differentials, what we call the (impossibility of the …) "uncovered inflation rate parity condition" in a monetary union. The analysis of the actual divergences and imbalances in the EMU …, then, suggests that failure to respect the "uncovered inflation rate parity condition" in a monetary union may lead to …

Persistent link: https://www.econbiz.de/10011926988

Attitudes Towards Inflation and the Viability of Fixed Exchange Rates : Evidence from the EMS

Collins, Susan M.; Giavazzi, Francesco - 2021

inflation and unemployment among EMS members since the late 1970s. This paper presents new empirical evidence for this … inflation countries -- France and Italy -- have experienced a decrease in tolerance for inflation relative to unemployment …. Germany and other low inflation countries, in contrast, appear to have experienced a decrease in tolerance for unemployment …

Persistent link: https://www.econbiz.de/10013249159

Attitudes Towards Inflation and the Viability of Fixed Exchange Rates : Evidence From the EMS

Collins, Susan M. - 1992

Persistent link: https://www.econbiz.de/10012474922

The impact of macroeconomic variables on exchange rate uncertain

Kaboro, Jane; Mose, Naftaly - In: Financial internet quarterly 17 (2021) 3, pp. 47-55

Macroeconomic convergence is critical for member states to achieve the level of harmonization required for establishing a stable and resilient monetary union. The East African Community (EAC) member states, therefore, established set targets for macroeconomic convergence, intending to eliminate...

Persistent link: https://www.econbiz.de/10012803220

The political choice and collapse of fixed exchange rates

Hefeker, Carsten - 1995

Evidence suggests there is a strong tendency among states to choose fixed exchange rates. Yet he interpretation of fixed exchange rates as a monetary policy rule remains unconvincing. Adopting an endogenous policy perspective, this paper argues that political-support maximizing governments...

Persistent link: https://www.econbiz.de/10009681117

Exchange rate regimes in the ASEAN : would a currency union outperform the independent managed floating regimes?

Sangaré, Ibrahima - In: Journal of economic integration : jei 36 (2021) 1, pp. 72-102

Persistent link: https://www.econbiz.de/10012593270

Exchange Rate Volatility and Currency Union : Some Theory and New Zealand Evidence

Scrimgeour, Dean - 2002

This paper considers the effect of currency union on exchange rate volatility. At a theoretical level, a simple framework is developed for thinking about volatility and exchange rate arrangements and some inferences are drawn from it. Empirically, the interaction between currency areas and...

Persistent link: https://www.econbiz.de/10014112455

Martingales in Floating ASEAN+3 Currencies

Rufino, Cesar - 2015

The Martingale properties of the floating exchange rates of the ASEAN 3 region are analyzed in this study using contemporary (2000 to 2012) weekly data of inter-bank call rates. The main goal of the analysis is to see if informational efficiency is a feature floating (managed or independently...

Persistent link: https://www.econbiz.de/10013020070

On the Credit and Exchange Rate Channels of Central Bank Asset Purchases in a Monetary Union

Darracq Pariès, Matthieu - 2019

Through the euro area crisis, financial fragmentation across jurisdictions became a prime concern for the single monetary policy. The ECB broadened the scope of its instruments and enacted a series of non-standard measures to engineer an appropriate degree of policy accommodation. The...

Persistent link: https://www.econbiz.de/10012889467

Do the Benefits of Fixed Exchange Rates Outweigh Their Costs? The Franc Zone in Africa

Rodrik, Dani; Devarajan, Shantayanan - 2021

maintain lower inflation levels than their neighbors. Our framework provides a way of weighing these costs and benefits. The … inflation differential between CFA and non-CFA African countries has been around 14 percentage points. We attribute this …. Under reasonable output-inflation tradeoffs, the output costs of maintaining a fixed exchange rate have outweighed the …

Persistent link: https://www.econbiz.de/10013242913