Exchange rate-based inflation stabilization (ERBS) policies are associated with a boom-recession cycle in economic activity and sustained real exchange rate appreciation. A class of models in the literature has explained these empirical regularities with the lack of credibility of the...

Optimum currency area : currency area composition and exchange-rate regimes-theory and evidence reconciled -- Measuring the sacrifice ratio : some international evidence / with Kai Leitemo -- Regional labor market adjustment in Norway

The international monetary system is structurally instable. Furthermore, all official currencies in the world today are created through bank debt, and therefore automatically involve interest. A systemic way to improve stability would be to diversify the types of currencies and the agents who...

Monetary policy regimes encompass the constraints or limits imposed by custom, institutions and nature on the ability of the monetary authorities to influence the evolution of macroeconomic aggregates. This chapter surveys the historical experience of both international and domestic (national)...

Cover; Half Title; Title Page; Copyright Page; Dedication; Table of Contents; Preface; Introduction; 1. Optimum Currency Areas: Currency Area Composition and Exchange-Rate Regimes-Theory and Evidence Reconciled; 2. Measuring the Sacrifice Ratio: Some International Evidence (with Kai Leitemo); 3. Regional...