Comment fixer les cours de change?. Annonces et correspondances maastrichtiennes
AbstractComment 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 InfoArticle provided by De Boeck Université in its journal Recherches économiques de Louvain.
Volume (Year): 69 (2003)
Issue (Month): 1 ()
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Web page: http://www.cairn.info/revue-recherches-economiques-de-louvain.htm
EMU; state- and time-dependent rules; switch to fixed exchange rates.;
Other versions of this item:
- Jean-Sébastien PENTECOTE & Marc-Alexandre SENEGAS, 2003. "Comment fixer les cours de change? Annonces et correspondances maastrichtiennes," Discussion Papers (REL - Recherches Economiques de Louvain) 2003012, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
- E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
- F3 - International Economics - - International Finance
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