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The Determinants of Realignment Expectations Under the EMS : Some Empirical Regularities

Chen, Zhaohui; Giovannini, Alberto - 2021

The stability of the EMS depends crucially on realignment expectations of the market participants. In this paper we discuss how to measure such expectations and how to relate them to economic fundamentals, central bank reputation, and institutional arrangements of the EMS. We find the following...

Persistent link: https://www.econbiz.de/10013237565

The Distribution of Exchange Rates in the EMS

Engel, Charles M.; Hakkio, Craig S. - 2021

Exchange rates of currencies in the Exchange Rate Mechanism of the EMS are characterized by long periods of stability interrupted by periods of extreme volatility. The periods of volatility appear at times of realignments of the central parities and at times when the exchange rate is within the...

Persistent link: https://www.econbiz.de/10013239360

Fiscal Policy and Monetary Integration in Europe

Galí, Jordi; Perotti, Roberto - 2021

Growth Pact have significantly impaired the ability of EU governments to conduct a stabilizing fiscal policy and to provide … discretionary budget deficit over the period 1980-2002, using data on EMU countries and control groups of non-EMU EU countries and … other non-EU OECD countries. We do not find much support for this view. In fact, we find that discretionary fiscal policy in …

Persistent link: https://www.econbiz.de/10013239944

The Currency Reform as the Last Stage of Economic and Monetary Union : Some Policy Questions

Giovannini, Alberto - 2021

The paper discusses the policy problems of a project aimed at substituting several national currencies with one single currency. While these problems are of general interest, the analysis is motivated by the plan for Economic and Monetary Union among the members of the European Community. The...

Persistent link: https://www.econbiz.de/10013239962

Monetary Cohabitation in Europe

Persson, Torsten; Tabellini, Guido - 2021

How can monetary policy in stage III of European Monetary Union be coordinated between the `ins' and the `outs'? This paper compares alternative institutional mechanisms, and concludes that a generalized system of inflation targets at the European level has several merits. It strengthens...

Persistent link: https://www.econbiz.de/10013247265

The Expected Timing of EMS Realignments : 1979-83

Collins, Susan M. - 2021

This paper develops and estimates a model of the time at which market participants expected the French franc to be devalued relative to the German deutschemark during the early years of the European Monetary System. The model assumes that the expected time of exchange rate realignment is...

Persistent link: https://www.econbiz.de/10013247271

Can the European Monetary System Be Copied Outside Europe? Lessons from Ten Years of Monetary Policy Coordination in Europe

Giavazzi, Francesco; Giovannini, Alberto - 2021

This paper addresses the question of whether the European Monetary System can be copied outside Europe. Our answer is negative. The EMS is just one element of a more comprehensive design of institutional integration within Europe: the presence of the European Economic Community, and the...

Persistent link: https://www.econbiz.de/10013247407

Seigniorage in Europe

Grilli, Vittorio - 2021

In this paper, based on the experience of ten European countries, we study the relevance of seigniorage revenues in the recent past, and we speculate about their importance in the near future. We find that the members of the European community differ widely in the way they manage monetary...

Persistent link: https://www.econbiz.de/10013248704

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

Collins, Susan M.; Giavazzi, Francesco - 2021

History provides us with many examples of multiple country fixed exchange rate regimes that have eventually fallen apart. In light of these failures, why has the EMS been so successful in stabilizing exchange rates among members, and in expanding its membership? This paper argues that one key...

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

Fiscal Policy and Monetary Union : Is There a Tradeoff between Federalism and Budgetary Restrictions?

Eichengreen, Barry; von Hagen, Jürgen - 2021

more fragile where subcentral jurisdictions are prevented from borrowing. The implications for the EU are direct. That EU … member states to the EU itself …

Persistent link: https://www.econbiz.de/10013249559