A growing literature has emerged to assess the importance and the channels of contagion during the recent currency crises which occured in the 1990s. However, little attention has been paid to the policy implications of the way to coordinate interventions in order to defend not only a single,...

Since January 2008, the Euro Area has enlarged for the third time to Cyprus and Malta. As Slovakia is now planned to join in 2009, these waves of new entries revive the debate around greater asymmetries which may threaten the stability of the whole monetary union. This paper extends Bayoumi and...

I extend the Bayoumi-Eichengreen (1993) approach by extracting new information from a scatter plot of correlation coefficients between shocks in order to better visualize how far a given country is from a monetary union. Indexes of distance and relative strength can be derived from either a...

In this article, a unified framework is built with the aim at underlying the main features of the first two generations of currency crisis models. It lies in the new open-economy literature. The purpose is to give a new way of understanding the relationship between the current account...

Comment fixer les cours de change ? Annonces et correspondances maastrichtiennes, by Jean-Sébastien Pentecote and Marc-Alexandre SenegasThis analysis questions the distinction between two exchange rate fixing rules : a « time-dependent" rule under which the exchange rate is fixed at an...

This paper questions the impact of trade integration on business cycle sychronization in the EMU by distinguishing increase of existing trade flows (the intensive margin) and creation of new trade flows (the extensive margin). Using a DSGE model, we find that synchronization is weakened when new...