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

Collins, Susan M. - 1992

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/10012474922

One Money, One Market : Estimating the Effect of Common Currencies on Trade

Rose, Andrew K. - 1999

A gravity model is used to assess the separate effects of exchange rate volatility and currency unions on international trade. The panel data set used includes bilateral observations for five years spanning 1970 through 1990 for 186 countries. In this data set, there are over one hundred...

Persistent link: https://www.econbiz.de/10012471350

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

Devarajan, Shantayanan - 1991

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/10012475278

Real and Monetary Disturbances in an Exchange-Rate Union

Marston, Richard C. - 1981

This paper investigates how a small country fares in an exchange-rate union if that country is subject to real and monetary disturbances originating at home and abroad. By joining a union, the country can fix the exchange rate between its currency and the currency of another country or...

Persistent link: https://www.econbiz.de/10012478413

Exchange-Rate Unions and the Volatility of the Dollar

Marston, Richard C. - 1980

This study analyzes why formation of an exchange-rate union, such as the newly-established European Monetary System, can be harmful to the interests of some member countries. The framework provided for analyzing behavior in the union is a three-country model which combines an asset market...

Persistent link: https://www.econbiz.de/10012478644

Intramarginal Intervention in the EMS and the Target-Zone Model of Exchange-Rate Behavior

Dominguez, Kathryn M. - 1991

Empirical work on exchange-rate behavior under a target-zone regime has used data produced by the European Monetary System (ENS) and has found that the data contradict important predictions made by the standard target-zone model. We argue that the contradictions reflect a misinterpretation of...

Persistent link: https://www.econbiz.de/10012475341

Long-Run Determinants of Inflation Differentials in a Monetary Union

Altissimo, Filippo - 2005

This paper analyzes the long-run determinants of inflation differentials in a monetary union. First, we aim at …some stylized facts relating the regional dispersion in headline inflation rates in the euro area as well as in the …-traded sector as the primary cause of price and inflation differentials, with shocks to productivity in the traded sector being …

Persistent link: https://www.econbiz.de/10012467206

Is it is or is it Ain't my Obligation? Regional Debt in Monetary Unions

Cooper, Russell - 2004

This paper studies the implications of the circulation of interest bearing regional debt in a monetary union. Does the circulation of this debt have the same monetary implications as the printing of money by a central government? Or are the obligations of this debt simply backed by future...

Persistent link: https://www.econbiz.de/10012468454

Coordination and Crisis in Monetary Unions

Aguiar, Mark - 2014

common monetary authority chooses inflation for the union, also without commitment. We first describe the existence of a … wisdom that all countries should prefer a union with low-debt members, as such a union can credibly deliver low inflation …

Persistent link: https://www.econbiz.de/10012458389

Re-Evaluating Swedish Membership in EMU : Evidence from an Estimated Model

Söderström, Ulf - 2008

inflation and GDP growth might have been slightly higher if Sweden had been a member of EMU since the launch in 1999, but also …

Persistent link: https://www.econbiz.de/10012464128