This paper studies the optimal design of monetary policy in an optimizing two-country sticky price model. We suppose that the production sequence of final consumption goods stretches across both countries and is associated with vertical trade. Prices of final consumption goods are sticky in the...

We analyze in this paper how the mutual dependence of private sector expectations in different countries on one another influences the stability of fixed exchange rate regimes. The crisis probabilities of countries trading with one another are interdependent because wage setters react to an...

Währungskrisen einzelner Länder können weitreichende Folgen für die internationalen Devisen- und Finanzmärkte haben. Dafür gab es in den 90er Jahren viele Beispiele. Durch welche Transmissionskanäle breiteten sich diese Krisen aus?