Narrow search
Showing 1 - 10 of 6,325
Cover Image
Theoretical Issues Pertaining to Monetary Unions
McCallum, Bennett T. - 2021
fully operational. A second relevant body of theory is that pertaining to currency crises. Formal models clarify various … recently- developed fiscal theory of price level determination, which if valid would have major implications for monetary …-fiscal arrangements in currency unions. This theory does not contend that fiscal behavior drives an accommodative monetary authority, but …
Persistent link: https://www.econbiz.de/10013240314
Cover Image
Capital Market Imperfections and the Theory of Optimum Currency Areas
Agenor, Pierre-Richard - 2010
This paper studies how capital market imperfections affect the welfare effects of forming a currency union. The analysis considers a bank-only world where intermediaries compete in Cournot fashion and monitoring and state verification are costly. The first part determines the credit market...
Persistent link: https://www.econbiz.de/10012759212
Cover Image
Monetary Unions, External Shocks and Economic Performance : A Latin American Perspective
Edwards, Sebastian - 2006
During the last few years there has been a renewed analysis in currency unions as a form of monetary arrangement. This new interest has been largely triggered by the Euro experience. Scholars and policy makers have asked about the optimal number of currencies in the world economy. They have...
Persistent link: https://www.econbiz.de/10012780126
Cover Image
Participation in a Currency Union
Casella, Alessandra - 2008
When countries of different sizes participate in a cooperative agreement, the potential gain from deviation determines the minimum power that each country requires in the common decision-making. lt;brgt;lt;bRgt;This paper studies the problem in the context of a monetary union - multiple...
Persistent link: https://www.econbiz.de/10012774523
Cover Image
Self-Validating Optimum Currency Areas
Corsetti, Giancarlo; Pesenti, Paolo A. - 2022
In this paper we show that a currency area can be a self-validating optimal policy regime, even when monetary unification does not foster real economic integration and intra-industry trade. This is because profit-maximizing producers in a currency area adopt endogenous pricing strategies that...
Persistent link: https://www.econbiz.de/10014120177
Cover Image
The Optimal Currency Area in a Liquidity Trap
Cook, David E. - 2013
Open economy macro theory says that when a country is subject to idiosyncratic macro shocks, it should have its own …
Persistent link: https://www.econbiz.de/10013073571
Cover Image
How Long Did it Take the United States to Become an Optimal Currency Area?
Rockoff, Hugh - 2022
The United States is often taken to be the exemplar of the benefits of a monetary union. Since 1788 Americans, with the exception of the Civil War years, have been able to buy and sell goods, travel, and invest within a vast area without ever having to be concerned about changes in exchange...
Persistent link: https://www.econbiz.de/10013322365
Cover Image
Understanding the Gains from Wage Flexibility : The Exchange Rate Connection
Galí, Jordi; Monacelli, Tommaso - 2021
We study the gains from increased wage flexibility using a small open economy model with staggered price and wage setting. Two results stand out: (i) the effectiveness of labor cost reductions as a means to stimulate employment is much smaller in a currency union, (ii) an increase in wage...
Persistent link: https://www.econbiz.de/10013311616
Cover Image
The Endogeneity of Exchange Rate Regimes
Eichengreen, Barry - 2021
The international monetary system has passed through a succession of phases characterized alternatively by the dominance of fixed and flexible exchange rates. How are these repeated shifts between fixed and flexible rate regimes to be understood? The present paper specifies and tests six...
Persistent link: https://www.econbiz.de/10013225407
Cover Image
How Many Monies? A Genetic Approach to Finding Optimum Currency Areas
Ghosh, Atish R.; Wolf, Holger C. - 2021
Recent moves towards greater monetary integration in Western Europe - and disintegration in Eastern Europe and the former Soviet Union - have rekindled interest in the theoretical and empirical aspects of optimal currency areas (OCA). In this paper, we examine the marginal benefit of increasing...
Persistent link: https://www.econbiz.de/10013246660