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Alternative paths towards EMU : lessons from an expanded Mundell-Fleming model for the accession countries

Vinhas de Souza, Lúcio; Ledrut, Elisabeth - 2002

A small expectations-expanded ""Mundell-Fleming"" model is built for the European Union Accession Countries and estimated to assess the optimality of different exchange rate regimes (a peg and a float) through a simple welfare function. Floating appears as the best option for most of the...