Optimum Currency Areas Under Inflation Targeting
AbstractSeveral 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. Copyright Kluwer Academic Publishers 2003
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Bibliographic InfoArticle provided by Springer in its journal Open Economies Review.
Volume (Year): 14 (2003)
Issue (Month): 2 (April)
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Web page: http://www.springerlink.com/link.asp?id=100323
monetary union; common currency; asymmetric shocks; output stability;
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