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Beggar Thy Neighbour: Exchange Rate Regime Misadvice from Misunderstandings of Mundell (1961)

Pope, Robin - 2007

unaddressed when economists extended Mundell (1961) via expected utility theory since this theory also ignores the impossibility … decisions. The problems can be overcome by modelling within SKAT, the Stages of Knowledge Ahead Theory. This paper points to …

Persistent link: https://www.econbiz.de/10010263183

The damage from clean floats: From an anti-inflationary monetary policy

Pope, Robin; Selten, Reinhard; Kaiser, Johannes; Kube, … - 2007

embeds a new theory of exchange rate determination involving the uncontroversial power of fully cooperating central banks to … totally fix the exchange rate. The new model is within a broader theory that includes risk effects normally excluded, SKAT …, the Stages of Knowledge Ahead Theory. We use SKAT to analyse outliers in our experimental results, and indicate some new …

Persistent link: https://www.econbiz.de/10010274161

Default, Electoral Uncertainty and the Choice of Exchange Regime

Hefeker, Carsten - 2004

The paper explores the interaction between debt crises and devaluation. Since the optimal level of devaluation in a crisis depends on the level of debt that has to be serviced, a default makes a devaluation less likely. Expected devaluation depends thus on expectations about default which is...

Persistent link: https://www.econbiz.de/10010295431

Integration of financial markets and national price levels: the role of exchange rate volatility

Hoffmann, Mathias; Tillmann, Peter - 2008

How does international financial integration affect national price levels? To analyze this question, this paper formulates a two-country open economy sticky-price model under either segmented or complete asset markets. It is shown that the effect of financial integration, i.e. moving from...

Persistent link: https://www.econbiz.de/10010295879

Default, Electoral Uncertainty and the Choice of Exchange Regime

Hefeker, Carsten - 2007

Persistent link: https://www.econbiz.de/10010296027

EMU and fiscal discipline: the end of the depreciation threat

Heinemann, Friedrich - 1998

Are the characteristics of the exchange rate regime relevant for the degree of fiscal discipline? What are the conclusions for fiscal behavior in Europe after the transition to EMU? These are the central questions that are analyzed in this paper from a theoretical point of view. After a general...

Persistent link: https://www.econbiz.de/10010297592

Exchange-rate regime and economic growth: a review of the theoretical and empirical literature

Petreski, Marjan - 2009

The aim of this paper is to examine the theoretical and empirical arguments for the relationship between the exchange-rate regime and economic growth. As a nominal variable, the exchange rate (regime) might not affect the long-run economic growth. However, there is no unambiguous theoretical...

Persistent link: https://www.econbiz.de/10010298819

Keynesian and Austrian Perspectives on Crisis, Shock Adjustment, Exchange Rate Regime and (Long-Term) Growth

Maurel, Mathilde; Schnabl, Gunther - 2011

asymmetric shocks. Whereas Mundell's (1961) seminal theory on optimum currency areas suggests depreciation in the face of crisis …

Persistent link: https://www.econbiz.de/10010334490

Can the exchange rate regime influence corruption?

Popkova, Katherina - 2011

This paper analyses the influence of the exchange rate regime of a country on the level of tolerated corruption with a special focus on the interdependency of monetary and fiscal policies. Using a simple theoretical framework based on Barro-Gordon-Model I compare independent monetary policy with...

Persistent link: https://www.econbiz.de/10010281777

Monetary policy under alternative exchange rate regimes in Central and Eastern Europe

Ziegler, Christina - 2012

Monetary policy in CEE is an important determinant in the wage bargaining process, because trade unions have to predict inflation as one component of future real wages. This paper scrutinizes whether countries in CEE that officially announce an inflation target are tempted to act...

Persistent link: https://www.econbiz.de/10010308235