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Contents: 1. Forum Economique Franco-Allemand - Deutsch-Französisches Wirtschaftspolitisches Forum...1 -- 2. Opening Address, Klaus Bünger...2 -- 3. EMU and Transatlantic Exchange-Rate Stability - Agnès Bénassy-Quéré and Benoît Mojon...5 -- 4. What Exchange Rate Policy in EMU? - Manfred...
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The impact of aggregate nominal and real shocks on the variance of relative prices is studied in the case of an open economy with fixed exchange rates where agents have limited information about aggregate shocks and the price level. In the first part of the paper it is shown that the limited...
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