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Comment fixer les cours de change?. Annonces et correspondances maastrichtiennes

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  • Jean-Sébastien Pentecôte
  • Marc-Alexandre Sénégas

Abstract

Comment fixer les cours de change ? Annonces et correspondances maastrichtiennes, by Jean-Sébastien Pentecote and Marc-Alexandre SenegasThis analysis questions the distinction between two exchange rate fixing rules : a « time-dependent" rule under which the exchange rate is fixed at an arbitrarily given date ; a « state-dependent" rule under which the irrevocable switch to a peg occurs when the fundamentals reach a given threshold value. By replacing them in a common analytical framework, we underline the strict equivalence between the two rules if the fundamentals follow a purely deterministic process during the transition. In a broader stochastic context, a correspondence in probabilistic terms prevails between these strategies. This unified approach allows a new assessment of the Maastricht way to EMU as regards exchange rates. In particular, we emphasize some properties of the scenario which was finally adopted by the European monetary authorities.

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Bibliographic Info

Article provided by De Boeck Université in its journal Recherches économiques de Louvain.

Volume (Year): 69 (2003)
Issue (Month): 1 ()
Pages: 39-71

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Handle: RePEc:cai:reldbu:rel_691_0039

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Keywords: EMU; state- and time-dependent rules; switch to fixed exchange rates.;

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