The Forex Regime and EMU Expansion
AbstractThis paper provides evidence that the choice of the foreign exchange regime is not of first order importance for achieving high output growth. It is argued that due to the forward looking nature of the foreign exchange market, exchange rate stability hinges on the current and anticipated coherency of monetary and fiscal policies. We demonstrate this empirically on a panel including potential EMU accession countries. By means of rank regression analysis we uncover the partial links across the regime specifics of the representative country versus the German regime during the 1990s. Published in Open Economies Review ,2003, 14(3), 285-298.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 02-010/2.
Date of creation: 06 Feb 2002
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Exchange Rate Regime; Growth; EMU; CEECs;
Other versions of this item:
- NEP-ALL-2002-03-04 (All new papers)
- NEP-EEC-2002-03-04 (European Economics)
- NEP-IFN-2002-04-08 (International Finance)
- NEP-MON-2002-03-04 (Monetary Economics)
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