Pesaran, M. Hashem; Smith, L. Vanessa; Smith, Ron P. - Institute of Economic Policy Research (IEPR), … - 2005
This paper attempts to provide a conceptual framework for the analysis of counterfactual scenarios using macroeconometric models. As an application we consider UK entry to the euro. Entry involves a long-term commitment to restrict UK nominal exchange rates and interest rates to be the same as...
