Although there seems to be a broad consensus among economists that purely floating or completely fixed exchange rates (the so-called corner solutions) are the only viable alternatives of exchange rate management, many countries do not behave according to this paradigm and adopt a strategy within...

This paper examines the design of macroeconomic policies after Central and Eastern European countries (CEECs) have joined the EU. We consider scenarios with and without CEECs being members of the European Economic and Monetary Union (EMU) and analyze consequences of different intermediate...

Recently it has often been claimed that globalization eases the job of central banks as it helps to tame inflation. This is used to argue that central banks (particularly the ECB, referring to the objectives as laid down in the EU Treaty) could or should reduce their efforts in the fight against...

Using two simple stochastic growth models that nest both exogenous and endogenous growth, this paper shows that money should not be neutral in the long run if it is not neutral in the short run and if growth is endogenous. By contrast, if growth is exogenous, money should be neutral in the long...

In countries with underdeveloped financial markets, interest rate restrictions, depreciating currency and high rates of inflation, the store of value function of domestic money is disabled. Consequently, foreign money becomes the only alternative liquid form of financial wealth. Contradicting...

Favorable conditions existed for world economic growth during the 1980s and early 1990s. Yet real GDP growth rates for 76 ou of 87 countries included in this study decreased during this time, relative to the 1968-80 period. The middle income countries experienced the greatest decline in growth...

Member States shall conduct their economic policies with a view to contributing to the achievement of objectives of the Community , as defined in Article 2, and in the context of the broad guidelines referred to in Article 103(2). The Memeber States and the Community shall act in accordance with...

This paper proposes a monetary policy game based on a microfounded general equilibrium model. The approach allows some key features of the policy game to be related to basic technological and preference parameters. Moreover, it shows how results are affected by the presence of non-atomistic...