Results 221 to 230 of about 17,426 (240)

The Political Economy of Currency Unions

SSRN Electronic Journal, 2021
How can monetary and fiscal policy sustain a currency union when member states have an exit option? This paper derives an interest rate rule that features state-dependent country weights with which the central bank can prevent a break-up. A simulation reveals that this policy rule lacks firepower and can only extend the lifetime of the union for a ...
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A Currency Union in East Asia

SSRN Electronic Journal, 2003
This paper investigates prospects of a currency union in East Asia, focusing on trade and financial integration occurring in the region. We find, based on a dynamic factor model, regional common shocks have been quantitatively important for output variations in the Asian economies.
Lee, Jong-Wha, Park, Yung Chul, Shin, Kwanho   +2 more
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ACT for Currency Unions

SSRN Electronic Journal, 2018
When real wages in an economy no longer reflect productivity, normally devaluations of the currency restore international price-competitiveness via imported inflation that reduces real wages. This instrument is not available in a currency union. The job has to be done by reductions in nominal wages that are felt as more severe pain than inflation ...
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Currency Consolidation and Currency Unions

2011
In outlining the ‘tripolar’ options for exchange rate regimes in Chapter 3 we foreshadowed that we would consider controversies over the third polar option — the currency union, including full monetary union — in this chapter. Arguments for the widespread adoption of a common currency, or even a universal global currency, all turn on the idea of ...
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The Future of the Currency Union

SSRN Electronic Journal, 2013
This note attempts a concise yet comprehensive overview of the crisis still facing the eurozone, in the areas of competitiveness, fiscal policy, and banking. The euro’s founding documents enshrined such principles as fiscal constraints, the “no bailout clause,” and assignment to the ECB of the goal of low inflation to the exclusion of monetizing ...
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Currency Risk in Currency Unions

2013
Sovereign yield spreads within currency unions may reflect the risk of outright default. Yet, if exit from the currency union is possible, spreads may also reflect currency risk. In this paper, we develop a New Keynesian model of a small member country of a currency union, allowing both for default within and exit from the union.
Kriwoluzky, Alexander, Müller, Gernot, Wolf, Martin   +2 more
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Is The Eastern Caribbean Currency Union an Optimum Currency Area?

The Journal of Developing Areas, 2014
Throughout the turbulence in the international financial system, eastern Caribbean countries have enjoyed remarkable monetary and economic stability. This paper attempts to characterize the types of structural shocks in the Eastern Caribbean Currency Union (ECCU) and other countries in the region and compare them with other currency unions such as the ...
Xiaodan Zhao, Yoonbai Kim
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Currency unions and the incentive to reform: are market mechanisms enough?

The North American Journal of Economics and Finance, 2001
This paper studies the incentives to join a monetary union under alternative assumptions about the extent of market reform within the union and in the candidate countries. A lack of mobility, wage/price flexibility or diversification opportunities, brings costs for both new entrants and existing union members.
Hallett, Andrew Hughes, Hougaard Jensen, Svend E.   +1 more
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Currency unions and currency crises: an empirical assessment

International Journal of Finance & Economics, 2008
AbstractUsing panel data of 192 countries from 1970 through 1999, and 195 currency crisis episodes, this study examines the effect of membership in a currency union on the probability of experiencing a currency crisis. Both parametric and non‐parametric estimates suggest that membership in a currency union reduces the likelihood of a currency crash ...
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Currency unions and gravity models revisited

SSRN Electronic Journal, 2003
Gravity models have been shown to be fairly effective in modelling bilateral trading patterns, explaining more than 50 per cent of the variation in trade. This paper examines bilateral trade patterns using a data set provided by Rose and van Wincoop (2001).
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