Three Exchange Rate Regimes and a Monetary Union: Determinacy, Currency Crises, and Welfare.

We study three dfferent exchange rate regimes in a stochastic OLG model with free capital mobility and incomplete markets. The regimes are characterized by the type of coordinated seignorage financed transfer (orfiscal) policy in place. We are especially interested in how the differenttypes of policies a ect the possibility of sunspot equilibria with real and/or nominal effects.

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Year of publication:	2001
Authors:	Nielsen, C.K.
Subject:	EXCHANGE RATE \| CENTRAL BANKS \| CURRENCIES

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Type of publication:	Book / Working Paper
Notes:	35 pages
Classification:	D52 - Incomplete Markets ; D60 - Welfare Economics. General ; D84 - Expectations; Speculations ; F31 - Foreign Exchange ; F42 - International Policy Coordination and Transmission
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005774261