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| Registros recuperados: 18 | |
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| Krawczyk, Mariusz K.. |
| The politically and legally complicated character of the EU Eastern Enlargement heavily influenced the conflict between the legal and economic rationality underlying the construction of the EMR-II. This makes the ERM-II vulnerable to currency crises and creates conditions for a widespread currency and asset substitution in the accession countries. As a result, the required participation of all accession countries in the ERM-II imposes unnecessary costs on the whole enlargement process. The costs could be avoided if the EU adopted a more flexible approach to the enlargement of its monetary union, allowing for an individual path of adopting the euro in each accession country depending on the country's economic conditions. |
| Tipo: Working or Discussion Paper |
Palavras-chave: EU enlargement; Monetary integration; Currency crisis; Asset substitution; Financial Economics; F32; F33; F36. |
| Ano: 2004 |
URL: http://purl.umn.edu/26309 |
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| Kohler, Marion. |
| In Kohler (2002) we analyse coalition formation in monetary policy coordination games between n countries. We find that positive spillovers of the coalition formation process and the resulting free-rider problem limit the stable coalition size: since the coalition members are bound by the union's discipline, an outsider can successfully export inflation without fearing that the insiders will try to do the same. In this paper, based on the same model, we allow countries to join competing coalitions. The formation of a large currency bloc is not sustainable since it would impose too much discipline on all participants. However, the co-existence of several smaller currency blocs may be a second-best solution to the free-riding problem of monetary policy... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Currency unions; International policy coordination; Free-riding; Coalition formation; Financial Economics; F33; F42. |
| Ano: 2004 |
URL: http://purl.umn.edu/26274 |
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| Yildirim, Julide. |
| The high degree of economic integration has led to an increased degree of currency substitution in the EU countries, which could bring instability in national money demand functions while an EU-wide money demand function could be more stable. Currency substitution usually takes the form of cross border deposits (CBD), which are not included in the traditional monetary aggregates. Thus, extended monetary aggregates that include the relevant CBDs are defined in this study. In order to investigate the implications of currency substitution for the stability of the demand functions, the traditional and extended monetary aggregates for five EU countries are defined in addition to EU-wide monetary aggregates. The estimated EU-wide demand for extended money... |
| Tipo: Journal Article |
Palavras-chave: Currency substitution; Cross border deposits; Extended monetary aggregates; Demand for money; Vector autoregression; Financial Economics; E41; F33; E52; E47. |
| Ano: 2003 |
URL: http://purl.umn.edu/43999 |
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| Hefeker, Carsten. |
| The paper explores the interaction between the proposed monetary union for ECOWAS and structural reforms of fiscal policy. The effects depend to a large extent on the degree of similarity of member countries. In a monetary union of similar countries, member states run a more distortive fiscal policy, while their structural reform efforts will fall. This is also the case for countries that unilaterally peg to an anchor currency or introduce a foreign currency. In an monetary union with dissimilar countries the reverse can happen for those member states that are confronted with high distortion countries. This result implies that current WAEMU members will run a less distortive fiscal policy after the inclusion of other members of ECOWAS. |
| Tipo: Working or Discussion Paper |
Palavras-chave: West Africa; Monetary union; Fiscal policy; Structural reforms; Financial Economics; F33; E61; E63. |
| Ano: 2003 |
URL: http://purl.umn.edu/26257 |
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| Wilfling, Bernd. |
| The volatility of interest rates is relevant for many financial applications. Under realistic assumptions the term structure of interest rate differentials provides an important prediction of the term structure of interest rates. This paper derives the term structure of differentials in a situation in which two open economies plan to enter a monetary union in the future. Two systems of floating exchange rates prior to the union are considered, namely a free-float and a managed-float regime. The volatility processes of arbitrary term differentials under the respective pre-switch arrangements are compared. The paper elaborates the singularity of extremely short-term (i.e. instantaneous) interest rates under extensive leaning-against-the-wind intervention... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Interest rate volatility; Term structure; Exchange rate arrangements; Intervention policy; Stochastic processes; Financial Economics; E43; F31; F33; C52. |
| Ano: 2001 |
URL: http://purl.umn.edu/26277 |
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| Corsetti, Giancarlo; MacKowiak, Bartosz. |
| We study the interaction of fiscal and monetary policies during a currency crisis in an economy with government nominal liabilities. We show that the stock and maturity of these liabilities are key determinants of the magnitude, timing and predictability of a devaluation. Among notable features of our model, monetary authorities defend the currency parity conditional on the level of the interest rate, rather than on the stock of international reserves; budget deficits need not be high before a currency crisis; postdevaluation inflation may exhibit little persistence, and money demand need not fall after the crisis. |
| Tipo: Working or Discussion Paper |
Palavras-chave: Currency crisis; Speculative attacks; Fiscal policy; Financial Economics; F31; F33; E58. |
| Ano: 2000 |
URL: http://purl.umn.edu/28516 |
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| Volz, Ulrich. |
| This paper argues that, in contrast to the popular bipolar view on exchange rate choices, intermediate regimes in general and regional exchange rate systems such as the European Monetary System (EMS) in particular should not be ruled out per se even in today's world of highly mobile capital. The paper highlights that the 1992/93 crisis of the EMS' Exchange Rate Mechanism was a crisis of an exchange rate system and not just the collapse of unilateral pegs pursued by individual countries. Based on an assessment of credibility of the EMS before and during the crisis, the paper discusses distinct features that add to the credibility of regional exchange rate systems. It reasons that a system that is built around well-defined rules, and which is managed very... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Exchange rate regimes; Regional monetary systems; EMS crisis; Policy credibility; Financial Economics; F02; F33; F36; F42. |
| Ano: 2005 |
URL: http://purl.umn.edu/26238 |
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| Wilfling, Bernd. |
| Recent theory on exchange rate dynamics suggests that the mere announcement of regime switching from floating to fixed rates at a given future date triggers a reduction in exchange rate volatility during the interim period. Using a Markov-switching GARCH model this paper estimates the volatility processes of four EMU exchange rate returns vis-à-vis the German mark using daily data for the time prior to Stage III of EMU. Statistical inference yields the dates at which financial markets began to incorporate the expected EMU participation of each country into currency pricing. The data exhibits strong econometric evidence for two distinct views concerning the ultimate EMU membership: (1) Finland and France were considered irrefutable EMU members long before... |
| Tipo: Working or Discussion Paper |
Palavras-chave: EMU; Exchange rate policy; Volatility; Regime-switching GARCH models; Financial Economics; F31; F33; C51. |
| Ano: 2001 |
URL: http://purl.umn.edu/26136 |
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| Wilfling, Bernd. |
| The process of international interest rate convergence for arbitrary terms (represented by the term structure of interest rate differentials) is derived in a model of a small open economy which faces a purely time-contingent exchange rate regime switch from flexible to fixed rates. Special attention is paid to a situation in which financial markets deem a delay in the regime switch beyond the publicly announced fixing date possible. The closed-form solution of the term structure allows us to analyze the volatility of interest rate differentials thus providing a useful tool for interest-rate-sensitive security valuation and other risk management applications. Furthermore, the model demonstrates that the economy under consideration has to pay for the... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Exchange rate regime switches; Interest rates; Term structure; Stochastic processes; Uncertainty; Financial Economics; E43; F31; F33. |
| Ano: 2001 |
URL: http://purl.umn.edu/26165 |
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| Dreher, Axel. |
| The paper presents a detailed description of IMF and World Bank conditionality and tries to explain changes in this conditionality over time as well as differences between the two institutions. Using panel data it is shown that the number of Fund conditions seem to be influenced by contemporaneous World Bank activity. Moreover, the paper tries to explain compliance with World Bank conditionality as well as interruptions of IMF programs in the recipient countries. Compliance with World Bank conditionality is lower in election years and pre-election years. Breakdowns of IMF programs are less likely in election years. However, no other political factors seem to influence interruptions and compliance systematically. The paper describes the institutions'... |
| Tipo: Working or Discussion Paper |
Palavras-chave: IMF; World Bank; Conditionality; Compliance; Program Interruption; Financial Economics; D72; F33; F34. |
| Ano: 2002 |
URL: http://purl.umn.edu/26352 |
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| Shams, Rasul. |
| The World Bank is a prestigious and large international financial institution. Since its foundation it has widened the scope and the size of its activities. One interpretation of what the World Bank is doing is the provision of public goods. If we take this interpretation seriously the comprehensiveness of the Bank's activity suggests that the Bank is assuming more and more the functions of a world government in the making. An alternative interpretation would look at the World Bank as a huge bureaucratic organization, acting on its own behalf. This interpretation can not be endorsed fully by the available information, but only in the sense of bureau-shaping. The Bank itself is proud of being a knowledge bank. But its actual activity is the popularization... |
| Tipo: Working or Discussion Paper |
Palavras-chave: International lending; Economic development; Public goods; Interest groups; Financial Economics; F33; F34; G21; O1. |
| Ano: 2004 |
URL: http://purl.umn.edu/26380 |
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| Registros recuperados: 18 | |
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