A fluctuating exchange rate has an impact on how firms value a given stream of profits, thereby affecting the ability of an international oligopoly to collude implicitly. The conversion effect arises because the foreign firm maximizes its profits earned on the home market measured in foreign...

The paper is a contribution to the special issue “150 years Journal of Economics and Statistics”. The starting point is a series of articles on the nature and the history of the German Zollverein by Gustav Fischer in the early volumes of the Journal. Both the perception of the Zollverein and...

The paper compares the credibility of currency boards and (standard) pegs. Abandoning a currency board requires a time-consuming legislative process and an abolition will thus be previously expected. Therefore, a currency board solves the time inconsistency problem of monetary policy. However,...