Year: 1994
Author: Lane, Timothy D., Gros, Daniel
Credit and Capital Markets – Kredit und Kapital, Vol. 27 (1994), Iss. 1 : pp. 43–66
Abstract
Moving from the European Monetary System (EMS) to a European Monetary Union (EMU) implies a move from an asymmetric to a symmetric currency system. This paper uses a simple two-country model to compare the impact of various shocks on each country’s economy under alternative monetary arrangements, providing a basis for comparing symmetric and asymmetric systems and permitting an interpretation of the member countries’ divergent interests and the resulting Nash equilibrium. The analysis implies that the removal of trade barriers through the European Single Market plan and the additional shocks associated with German unification may partly explain the recent move toward a symmetrical system.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/ccm.27.1.43
Credit and Capital Markets – Kredit und Kapital, Vol. 27 (1994), Iss. 1 : pp. 43–66
Published online: 1994-01
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 24
Author Details
-
Barro, Robert S.: Rational Expectations and the Role of Monetary Policy, Journal of Monetary Economics, Vol. 2, No. 1 (Jan. 1976), pp. 1- 32.
Google Scholar -
Begg, David: Alternative Exchange Rate Regimes: The Role of the Exchange Rate and the Implications for Wage-Price Adjustment, (mimeo, CEPR, April 1990).
Google Scholar -
Bhandari, Jagdeep S. (ed.): Exchange Rate Management Under Uncertainty (Cambridge MA: MIT Press, 1985).
Google Scholar