Evaluating the EMS and EMU Using Stochastic Simulations: Some Issues
Summary:
Evaluations of European monetary integration using model simulations have given conflicting results, and the paper attempts to elucidate the reasons for the differences. Several features stand out: how to model realignments; how monetary policy is set for individual countries or for Europe; and how large are risk premium shocks in exchange markets. We quantify the effects of different assumptions relating to these features using MULTIMOD.
Series:
Working Paper No. 1993/028
Subject:
Economic integration Exchange rates Foreign exchange Inflation Monetary base Monetary unions Money National accounts Prices Return on investment
English
Publication Date:
March 1, 1993
ISBN/ISSN:
9781451844580/1018-5941
Stock No:
WPIEA0281993
Pages:
40
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