Monetary Policy Interactions under Managed Exchange Rates
AbstractThis paper studies monetary policy games in a two-period Mundell-Fleming model, under a regime of managed exchange rates. A regime of managed exchange rates is defined as one where exchange rates are pegged but bilateral parities can be changed from time to time. The paper argues that such a regime is the most appropriate description of the Bretton Woods system and many arrangements currently in existence. We show that Cournot-Nash equilibria under managed rates differ significantly from those under fixed or floating rates. Under managed rates the world-wide efficiency losses from lack of coordination are not equally shared by all countries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 123.
Date of creation: Aug 1986
Date of revision:
Contact details of provider:
Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
Other versions of this item:
- Giavazzi, Francesco & Giovannini, Alberto, 1989. "Monetary Policy Interactions under Managed Exchange Rates," Economica, London School of Economics and Political Science, vol. 56(222), pages 199-213, May.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- J. M. C. Santos Silva & Silvana Tenreyro, 2010.
"Currency Unions in Prospect and Retrospect,"
CEP Discussion Papers
dp0986, Centre for Economic Performance, LSE.
- Santos Silva, J.M.C & Tenreyro, Silvana, 2010. "Currency Unions in Prospect and Retrospect," CEPR Discussion Papers 7824, C.E.P.R. Discussion Papers.
- J.M.C. Santos Silva & Silvana Tenreyro, 2010. "Currency unions in prospect and retrospect," LSE Research Online Documents on Economics 28738, London School of Economics and Political Science, LSE Library.
- Carrera, Jorge Eduardo, 1995.
"Efectos precio y comercio en un area monetaria asimetrica
[Price and trade effects in an asymmetric monetary area]," MPRA Paper 7844, University Library of Munich, Germany.
- René Cabral-Torres, . "Monetary and Fiscal Policy Coordination," Discussion Papers 05/28, Department of Economics, University of York.
- Ploeg, F. van der, 1989.
"Monetary interdependence under alternative exchange-rate regimes,"
1989-20, Tilburg University, Center for Economic Research.
- Var Der Ploeg, F., 1989. "Monetary Interdependence Under Alternative Exchange-Rate Regime," Papers 8920, Tilburg - Center for Economic Research.
- Jochem, Axel, 1999. "Währungspolitische Interdependenz der EU-Beitrittskandidaten und die Wahl eines geeigneten Wechselkurssystems: Beitrag für den Projektbericht: Währungspolitische Optionen für die mittel- und osteu," Working Papers in Economics 1999,5, Universität der Bundeswehr München, Economic Research Group.
- Dale Henderson & Ning Zhu, 1990. "Uncertainty and the choice of instruments in a two-country monetary-policy game," Open Economies Review, Springer, vol. 1(1), pages 39-65, February.
- Dale W. Henderson & Ning S. Zhu, 1995. "Uncertainty, instrument choice, and the uniqueness of Nash equilibrium: microeconomic and macroeconomic examples," International Finance Discussion Papers 526, Board of Governors of the Federal Reserve System (U.S.).
- Carlo Carraro & Francesco Giavazzi, 1988.
"Can International Policy Coordination Really Be Counterproductive?,"
NBER Working Papers
2669, National Bureau of Economic Research, Inc.
- Carraro, Carlo & Giavazzi, Francesco, 1988. "Can International Policy Coordination Really Be Counterproductive?," CEPR Discussion Papers 258, C.E.P.R. Discussion Papers.
- Ploeg, F. van der, 1990.
"Macroeconomic policy coordination during the various phases of economic and monetary integration in Europe,"
1990-61, Tilburg University, Center for Economic Research.
- Van Der Ploeg, F., 1990. "Macroeconomic Policy Coordination During The Various Phases Of Economic And Monetary Integration In Europe," Papers 9061, Tilburg - Center for Economic Research.
- Alogoskoufis, George & Portes, Richard, 1990.
"International Costs and Benefits from EMU,"
CEPR Discussion Papers
424, C.E.P.R. Discussion Papers.
- Giorgio Gomel, 2001. "Implications of the Euro for International Monetary Relations: A Pole of Attraction in Europe and in the Mediterranean Basin," EUI-RSCAS Working Papers 34, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
- Ghironi, Fabio & Giavazzi, Francesco, 1998. "Currency areas, international monetary regimes, and the employment-inflation tradeoff," Journal of International Economics, Elsevier, vol. 45(2), pages 259-296, August.
- Loukas Stemitsiotis, 1999. "L’euro et les pays partenaires méditerranéens," Revue d'Économie Financière, Programme National Persée, vol. 52(2), pages 75-97.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.