Showing 1 - 10 of 157
This paper analyzes the costs and benefits for an emerging economy to formally adopt dollarization. The magnitude of the costs and benefits involved in this process will not be the same for all countries and depend on the particular characteristics of each economy as well as its relationship...
Persistent link: https://www.econbiz.de/10011261096
This paper presents the theoretical and empirical aspects of a monetary union between Brazil and Argentina based on the concept of Optimal Monetary Union. The behavior of some Brazilian and Argentinean macroeconomic indicators such as total debt, public deficit, interest rate and inflation rate...
Persistent link: https://www.econbiz.de/10009446536
Most of the literature on the independence of the Central Bank assumes only one policy instrument is available: monetary policy. If we introduce fiscal policy as well, when preferences may differ among policy-makers, the situation is radically different. In this case fiscal policy will weaken...
Persistent link: https://www.econbiz.de/10005504246
We show how a stability pact based on deficit sanctions eliminates the exacerbation of debt accumulation that may arise from monetary unification. Moreover, by making sanctions contingent upon the economic situation of countries, the stability pact provides for risk sharing. Differences in...
Persistent link: https://www.econbiz.de/10005504345
significant. Institutional innovations such as fiscal federalism within the EC and expanded swap facilities within the EMS are …
Persistent link: https://www.econbiz.de/10005504417
This Paper develops a framework for the analysis of the effects of institutions on economic performance in a monetary union in the presence of stabilization policy, unionized labour markets and monopolistically competitive price setting firms. Nominal wages are fixed contractually. In spite of...
Persistent link: https://www.econbiz.de/10005504756
If the third stage of monetary union in Europe begins on 1 January 1999, not all EU countries will participate: two, with opt-out clauses, may choose to stay out; others will have a derogation because they do not fulfil the required conditions. The Maastricht Treaty, while silent on the regime...
Persistent link: https://www.econbiz.de/10005497702
This paper presents a model of monetary policy-making in a federal monetary union. Central bank council members are representatives from the member states. In a repeated-game context, council members have an incentive to engage in strategic voting, trading political favours between each other....
Persistent link: https://www.econbiz.de/10005497837
This paper explores the conflict of real and monetary convergence during the EMU run-up of the Central and Eastern European new EU member states. Based on a Balassa-Samuelson model of productivity driven inflation, it finds a high probability of higher inflation in the new member states. It...
Persistent link: https://www.econbiz.de/10005408181
The stringent deficit criterion followed by the EMU is motivated by the belief that a sustainable fiscal arrangement is a must for a viable monetary union. In this paper we provide an empirical analysis of the issue of deficit convergence in the Euro area and compare and contrast the Euro-zone...
Persistent link: https://www.econbiz.de/10005466813