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What determines the currency to which countries peg or "anchor" their exchange rate? Data for over 100 countries between 1980 and 1998 reveal that trade network externalities are a key determinant. This implies that anchor currency choice may well be suboptimal in that certain currencies, e.g.,...
Persistent link: https://www.econbiz.de/10005605395
Accession countries are bound by EU rules to enter the eurozone after they have fulfilled the Maastricht criteria. Yet … for many years, the eurozone will not constitute an optimum currency area for the new members. There are additional risks … require fast productivity growth and will entail inflation rates well above present eurozone targets. The shares of the new …
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Während Manager von Industrie-, Bau- und Handelsunternehmen der Europäischen Währungsunion mit - eher zunehmender - Skepsis entgegensehen, lassen die Stimmen aus dem landwirtschaftlichen Berufsstand und der landwirtschaftlichen Fachpresse erkennen, daß die EWWU uni sono herbeigesehnt wird....
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This paper takes stock of the evolution of the international monetary system over the last thousand years. Several points stand out from the analysis. One is the reluctance of governments to embrace radical changes in international monetary relations. Another is the conflict between external and...
Persistent link: https://www.econbiz.de/10005264089
In this paper three possible reasons are examined for a sluggish inflation response to a hard currency peg. Models of overlapping wage contracts are analyzed and shown to generate little inertia. This contrasts with the effects of government credibility and the speed of private sector learning,...
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The more advanced Central and Eastern European Countries (CEECs) face an evolving set of considerations in choosing their exchange rate policies. On the one hand, capital mobility is increasing, and this imposes additional constraints on fixed exchange rate regimes, while trend real appreciation...
Persistent link: https://www.econbiz.de/10005771370
In this paper, I survey the issue of exchange rate regime choice from the perspective of both the industrial and emerging economies taking an historical perspective. I first survey the theoretical issues beginning with a taxonomy of regimes. I then examine the empirical evidence on the...
Persistent link: https://www.econbiz.de/10005599457