Monetary theory not only provides the tools to analyse monetary arrangements, it also shapes them in an essential way. The selected papers gathered together in this book deal with a variety of topics concerning both aspects of this twofold relationship. A number of controversial issues regarding...

The standard approach to optimum currency areas clashes with both modern monetary theory and empirical evidence. The present paper sets forth an equilibrium hypothesis that views the national border as the analogue of a policy measure impinging on agents' optimizing behavior. Copyright Kluwer...