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able to replicate key features of the data prior to and under EMU.We ?nd that the euro has a strong bearing on the …
Persistent link: https://www.econbiz.de/10010270020
Since the start of EMU national fiscal policy in the Eurozone can be conducted almost without paying any attention to consequences for the exchange rate. This might lower fiscal discipline. In order to shed light on the empirical relevance of this consideration, the impact of the exchange rate...
Persistent link: https://www.econbiz.de/10010297607
This paper provides evidence that the choice of the foreign exchange regime is not of first order importance for achieving high output growth. It is argued that due to the forward looking nature of the foreign exchange market, exchange rate stability hinges on the current and anticipated...
Persistent link: https://www.econbiz.de/10010324808
economic variables determine a given country's currency bloc affiliation. The dollar bloc differs from the euro bloc in that …
Persistent link: https://www.econbiz.de/10010305207
the current euro area crisis. The euro may have led to bubbles, but member economies were not free of trouble before the … euro. Many members were losing competitiveness and in need of removing structural rigidities. If anything, the euro was … introduction of the euro and then discuss the governance overhaul taking place in Europe today. This overhaul was something that …
Persistent link: https://www.econbiz.de/10010397268
Persistent link: https://www.econbiz.de/10011695691
economies (EMEs) on configurations between the US dollar, the euro and the yen. Given the difficulty that fixed or managed US … have a statistically but also an economically significant impact on the euro, and to a lesser extent the yen against the US … the appreciation of the euro against the US dollar in recent years. Interestingly, EME policy-makers appear to have become …
Persistent link: https://www.econbiz.de/10011605019
able to replicate key features of the data prior to and under EMU.We find that the euro has a strong bearing on the …
Persistent link: https://www.econbiz.de/10013370079
The paper explores the interaction between debt crises and devaluation. Since the optimal level of devaluation in a crisis depends on the level of debt that has to be serviced, a default makes a devaluation less likely. Expected devaluation depends thus on expectations about default which is...
Persistent link: https://www.econbiz.de/10010295431
The paper reviews exchange rate options for Mercosur countries. We start from the observation that most of the countries in the region have a longstanding tendency to adopt fixed exchange rates, and ask how such a system could best be designed. The Argentine crisis has demonstrated that...
Persistent link: https://www.econbiz.de/10010295434