Some countries may face choice between targeting inflation independently and entering a monetary union that targets inflation. This paper shows that the choice of a country in favour of monetary union may be motivated by asymmetrical supply shocks. The demand shocks are neutralised under these...

We model a typical Asian-crisis-economy using dynamic general equilibrium tech-niques. Exchange rates obtain from nontrivial fiat-currencies demands. Sudden stops/bank-panics are possible, and key for evaluating the merits of alternative ex-change rate regimes. Strategic complementarities...

The global financial and economic crisis revealed institutional weaknesses and structural problems of particular Economic and Monetary Union (EMU) countries. The crisis and slowdown that followed had an impact on their relative competitiveness. Financial and economic turbulences of recent years...

This paper evaluates the prospects for greater exchange rate coordination amongst Asian countries. This would help in fostering greater trade and investment linkages within the region and diversification of the reserve currency away from the US Dollar, both of which would shelter Asian economies...

Ce papier revoit la problématique du choix d’un régime de change pour les économies émergentes. Nous revoyons la littérature théorique et empirique sur la question en attachant une attention particulière à l’évolution des régimes de change (éventuelle disparition des régimes...

The great welcome that the recent FMI appointment for manager director have received in Spain and other countries, has contributed to the defence of this institution’s survival, notwithstanding that its work over 60 years have been hardly censured somewhere else. Thus, an analysis of this...

Financial market imperfections severely restrict currency use in international trade. We develop a unified search-based framework with financial frictions to address the determinants for currency choice, emphasizing the roles of trade finance and financial market development, as well as macro,...

Financial market imperfections severely restrict currency use in international trade. We develop a unified search-based framework with financial frictions to address the determinants for currency choice, emphasizing the roles of trade finance and financial market development, as well as macro,...