Asymmetric Shocks and Monetary Policy in a Currency Union
AbstractWe analyze the conduct of monetary policy in a currency union in the face of asymmetric shocks. In particular, we compare the stabilization properties of a currency union versus alternative exchange rate arrangements. The relative performance of a currency union is shown to depend on the extent of economic integration in patterns of consumption and production and on the relative weights placed on price stability versus employment stability in the monetary authority's objective function. Copyright 2000 by The editors of the Scandinavian Journal of Economics.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.
Volume (Year): 102 (2000)
Issue (Month): 4 (December)
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Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442
Other versions of this item:
- Lane, P, 1999. "Asymmetric Shocks and Monetary Policy in a Currency Union," Trinity Economics Papers 994, Trinity College Dublin, Department of Economics.
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
- F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
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