This paper is intended to theoretically present divergent business cycles as effects of a monetary union, even in the absence of asymmetric, exogenous shocks. The main inference form the model developed in this paper says that microeconomic optimization may lead to sub-optimal macro states and...

The Federal Reserve System or the Fed is one of the most prestigious institutions in the world. Founded by the Federal Reserve Act in 1913, the Fed has the responsibility of setting the monetary policy of the U.S. The Fed’s actions affect the money supply in the U.S. market which has a direct...

The aim of this paper is a reconsideration of some features of first and second generation models of currency crises and some conclusions from these models. In particular, theoretical justification for the existence of multiple equilibria is put under discussion in a broader context of...

The subject of the article is the theoretical aspects of the effectiveness of the sterilized currency intervention as a means to stabilize the fixed rate. Effectiveness of currency intervention, especially sterilized, is the subject of continuous controversy the resolution of which is searched...