Empirical Results for Some Monetary Areas According to Optimum Currency Area Criteria
نویسندگان
چکیده
منابع مشابه
The Endogeneity of the Optimum Currency Area Criteria
A country’s suitability for entry into a currency union depends on a number of economic conditions. These include, inter alia, the intensity of trade with other potential members of the currency union, and the extent to which domestic business cycles are correlated with those of the other countries. But international trade patterns and international business cycle correlations are endogenous. T...
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In this paper we examine currency areas and monetary policy coordination in a two-country model where the value of each country’s currency is determined endogenously. Exchanges in the goods markets are modelled as random bilateral matches, and households choose the amount and the frequency of purchases made in each currency area. By contrast, the currency market is centralized and Walrasian. We...
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A currency area can be a self-validating optimal policy regime, even when monetary unification does not foster real economic integration and intra-industry trade. In our model firms choose the degree of exchange rate pass-through onto export prices accounting for expected monetary policies, and monetary authorities choose optimal policy rules taking firms’ pass-through as given. We show that th...
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The endogeneity of optimum currency areas criteria has been widely studied since Frankel and Rose (1998) seminal paper. Literature normally suggests that there is a positive relationship between trade and business cycles correlation. This paper develops work on this subject (Silvestre and Mendonça, 2007) where we confirm this hypothesis in euro area countries and UE-15 for 1967-2003 period usin...
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Several countries face the choice between targeting inflation independently and entering a monetary union that targets inflation. The present paper extends the theory of optimum currency areas to deal with this choice. In contrast to the conventional theory, countries might form more of an optimum currency area the more asymmetric supply shocks are. By studying the stabilization properties of i...
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ژورنال
عنوان ژورنال: Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis
سال: 2015
ISSN: 1211-8516,1211-8516
DOI: 10.11118/actaun201563030877