This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
The Costs of EMU for Transition Countries Author info | Abstract | Publisher info | Download info | Related research | Statistics Alexandra Ferreira Lopes (ISEG, ISCTE and DINÂ MIA)
Additional information is available for the following
registered author(s):
Czech Republic, Hungary and Poland will have to join the European and Monetary Union. Surprisingly, there is very little work on the welfare consequences of the loss of monetary policy flexibility for these countries. This paper fills this void by providing a framework to evaluate quantitatively the economic costs of joining the EMU. Using a two country dynamic general equilibrium model with sticky prices we investigate the economic implications of the loss of monetary policy flexibility associated with EMU for each country. The main contribution of our general equilibrium approach is that we can evaluate the effects of monetary policy in terms of welfare. Our findings suggest that these economies may experience sizable welfare losses as a result of joining the EMU. Results show that the cost associated with the loss of the monetary policy flexibility is bigger in the presence of persistence technological shocks, weak correlation of monetary shocks, strong risk aversion and a small trade share with the EMU
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. 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.
Paper provided by Money Macro and Finance Research Group in its series Money Macro and Finance (MMF) Research Group Conference 2006 with number
2.
Download reference. The following formats are available: HTML
(with abstract ),
plain text
(with abstract ),
BibTeX ,
RIS (EndNote, RefMan, ProCite),
ReDIF
Length:
Date of creation: 02 Feb 2007Date of revision:
Handle: RePEc:mmf:mmfc06:2Contact details of provider: Web page: http://www.essex.ac.uk/afm/mmf/index.html
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Keywords: Monetary Policy ; Eastern and Central Europe Countries ; Euro ; Open Economy Macroeconomics ; General Equilibrium ; Other versions of this item:
Find related papers by JEL classification: C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
This paper has been announced in the following NEP Reports :
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Andrew Hughes Hallett & Diana N. Weymark, 2001.
"The Cost of Heterogeneity in a Monetary Union ,"
Working Papers
0128, Department of Economics, Vanderbilt University.
[Downloadable!]
Other versions: Ian Domowitz & R. Glenn Hubbard & Bruce C. Petersen, 1986.
"Business Cycles and the Relationship Between Concentration and Price-Cost Margins ,"
RAND Journal of Economics ,
The RAND Corporation, vol. 17(1), pages 1-17, Spring.
[Downloadable!] (restricted)
Lane, Philip R., 1999.
"The New Open Economy Macroeconomics: a Survey ,"
CEPR Discussion Papers
2115, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions:
Lane, P, 1999.
"The New Open Economy Macroeconomics: A Survey ,"
Trinity Economics Papers
993, Trinity College Dublin, Department of Economics.
[Downloadable!] Lane, Philip R., 2001.
"The new open economy macroeconomics: a survey ,"
Journal of International Economics ,
Elsevier, vol. 54(2), pages 235-266, August.
[Downloadable!] (restricted) Aksoy, Yunus & De Grauwe, Paul & Dewachter, Hans, 2002.
"Do asymmetries matter for European monetary policy? ,"
European Economic Review ,
Elsevier, vol. 46(3), pages 443-469, March.
[Downloadable!] (restricted)
Fidrmuc, Jarko & Iikka Korhonen, 2003.
"Similarity of Supply and Demand Shocks Between the Euro Area and the CEECs ,"
Royal Economic Society Annual Conference 2003
77, Royal Economic Society.
[Downloadable!]
Other versions:
Fidrmuc, Jarko & Korhonen, Iikka, 2001.
"Similarity of supply and demand shocks between the Euro area and the CEECs ,"
BOFIT Discussion Papers
14/2001, Bank of Finland, Institute for Economies in Transition.
[Downloadable!] Fidrmuc, Jarko & Korhonen, Iikka, 2003.
"Similarity of supply and demand shocks between the euro area and the CEECs ,"
Economic Systems ,
Elsevier, vol. 27(3), pages 313-334, September.
[Downloadable!] (restricted) Monticelli, Carlo, 2003.
"Voting on monetary policy in the Council of the European Central Bank ,"
Economic Modelling ,
Elsevier, vol. 20(5), pages 1015-1051, September.
[Downloadable!] (restricted)
Michele Ca’ Zorzi & Roberto A. De Santis & Fabrizio Zampolli, 2005.
"Welfare implications of joining a common currency ,"
Working Paper Series
445, European Central Bank.
[Downloadable!]
Rumen Dobrinsky & Gábor Korösi & Nikolay Markov & László Halpern, 2004.
"Firms’ Price Markups and Returns to Scale in Imperfect Markets: Bulgaria and Hungary ,"
William Davidson Institute Working Papers Series
2004-710, William Davidson Institute at the University of Michigan Stephen M. Ross Business School.
[Downloadable!]
Other versions: Cooley, Thomas F & Hansen, Gary D, 1989.
"The Inflation Tax in a Real Business Cycle Model ,"
American Economic Review ,
American Economic Association, vol. 79(4), pages 733-48, September.
[Downloadable!] (restricted)
Other versions:
Cooley, T.F. & Hansen, G.D., 1988.
"The Inflation Tax In A Real Business Cycle Model ,"
Papers
88-05, Rochester, Business - General.
Thomas F. Cooley & Gary D. Hansen, 1987.
"The Inflation Tax in a Real Business Cycle Model ,"
UCLA Economics Working Papers
496, UCLA Department of Economics.
[Downloadable!] Cooley, T.F. & Hansen, G.D., 1988.
"The Inflation Tax In A Real Business Cycle Model ,"
RCER Working Papers
155, University of Rochester - Center for Economic Research (RCER).
Bernd Hayo & Boris Hofmann, 2005.
"Comparing Monetary Policy Reaction Functions: ECB versus Bundesbank ,"
Marburg Working Papers on Economics
200502, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
[Downloadable!]
Other versions:
Bernd Hayo & Boris Hofmann, 2005.
"Comparing Monetary Policy Reaction Functions: ECB versus Bundesbank ,"
Macroeconomics
0504032, EconWPA.
[Downloadable!] Bernd Hayo & Boris Hofmann, 2004.
"Comparing Monetary Policy Reaction Functions: ECB versus Bundesbank ,"
Money Macro and Finance (MMF) Research Group Conference 2004
3, Money Macro and Finance Research Group.
[Downloadable!] Bernd Hayo & Boris Hofmann, 2006.
"Comparing monetary policy reaction functions: ECB versus Bundesbank ,"
Empirical Economics ,
Springer, vol. 31(3), pages 645-662, September.
[Downloadable!] (restricted) Bruno Merlevede & Joseph Plasmans & Bas van Aarle, 2003.
"A Small Macroeconomic Model of the EU-Accession Countries ,"
Open Economies Review ,
Springer, vol. 14(3), pages 221-250, July.
[Downloadable!] (restricted)
Kim, Jinill & Kim, Sunghyun Henry, 2003.
"Spurious welfare reversals in international business cycle models ,"
Journal of International Economics ,
Elsevier, vol. 60(2), pages 471-500, August.
[Downloadable!] (restricted)
Other versions: Douglas Laxton & Paolo Pesenti, 2003.
"Monetary Rules for Small, Open, Emerging Economies ,"
NBER Working Papers
9568, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Laxton, Douglas & Pesenti, Paolo, 2003.
"Monetary rules for small, open, emerging economies ,"
Journal of Monetary Economics ,
Elsevier, vol. 50(5), pages 1109-1146, July.
[Downloadable!] (restricted) Jordi Galí & Mark Gertler & J. David López-Salido, 2000.
"European Inflation Dynamics ,"
Banco de España Working Papers
0020, Banco de España.
John Whalley, 1984.
"Trade Liberalization among Major World Trading Areas ,"
MIT Press Books ,
The MIT Press,
edition 1, volume 1, number 0262231204, December.
Jordi Galí & Mark Gertler & J. David López-Salido, 2000.
"European Inflation Dynamics ,"
Banco de España Working Papers
0020, Banco de España.
Other versions:
Jordi Gali & Mark Gertler & J. David Lopez-Salido, 2001.
"European Inflation Dynamics ,"
NBER Working Papers
8218, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Galí, Jordi & Gertler, Mark & López-Salido, J David, 2001.
"European Inflation Dynamics ,"
CEPR Discussion Papers
2684, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Gali, Jordi & Gertler, Mark & Lopez-Salido, J. David, 2001.
"European inflation dynamics ,"
European Economic Review ,
Elsevier, vol. 45(7), pages 1237-1270.
[Downloadable!] (restricted) Carl Gjersem & Philip Hemmings & Andreas Reindl, 2004.
"Product Market Competition and Economic Performance in Hungary ,"
OECD Economics Department Working Papers
381, OECD, Economics Department.
[Downloadable!]
M. S. Mohanty & Marc Klau, 2004.
"Monetary policy rules in emerging market economies: issues and evidence ,"
BIS Working Papers
149, Bank for International Settlements.
[Downloadable!]
Kollman, R., 1996.
"The Exchange Rate in a Dynamic-Optimizing Current Account Model with Nominal Rigidities: A Quantitative Investigation ,"
Cahiers de recherche
9614, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
Other versions: Daniel Gros & Carsten Hefeker, 2000.
"One Size Must Fit All. National Divergences in a Monetary Union ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
[Downloadable!]
Other versions: Thomas F. Cooley & Vincenzo Quadrini, 2003.
"Common Currencies vs. Monetary Independence ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 70(4), pages 785-806, October.
[Downloadable!] (restricted)
Schmitt-Grohe, Stephanie & Uribe, Martin, 2004.
"Solving dynamic general equilibrium models using a second-order approximation to the policy function ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 28(4), pages 755-775, January.
[Downloadable!] (restricted)
Other versions:
Schmitt-Grohé, Stephanie & Uribe, Martín, 2001.
"Solving Dynamic General Equilibrium Models Using a Second-Order Approximation to the Policy Function ,"
CEPR Discussion Papers
2963, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Stephanie Schmitt-Grohe & Martin Uribe, 2001.
"Solving Dynamic General Equilibrium Models Using a Second-Order Approximation to the Policy Function ,"
Departmental Working Papers
200106, Rutgers University, Department of Economics.
[Downloadable!] Stephanie Schmitt-Grohe & Martin Uribe, 2002.
"Solving Dynamic General Equilibrium Models Using a Second-Order Approximation to the Policy Function ,"
NBER Technical Working Papers
0282, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Phelps, Edmund S & Taylor, John B, 1977.
"Stabilizing Powers of Monetary Policy under Rational Expectations ,"
Journal of Political Economy ,
University of Chicago Press, vol. 85(1), pages 163-90, February.
[Downloadable!] (restricted)
Dixit, Avinash K & Stiglitz, Joseph E, 1977.
"Monopolistic Competition and Optimum Product Diversity ,"
American Economic Review ,
American Economic Association, vol. 67(3), pages 297-308, June.
[Downloadable!] (restricted)
Other versions: Tommaso Monacelli, 2000.
"Relinquishing Monetary Policy Independence ,"
Boston College Working Papers in Economics
483, Boston College Department of Economics.
[Downloadable!]
Jeffrey A. Frankel & Andrew K. Rose, 1996.
"The Endogeneity of the Optimum Currency Area Criteria ,"
NBER Working Papers
5700, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Frankel, Jeffrey A & Rose, Andrew K, 1996.
"The Endogeneity of the Optimum Currency Area Criteria ,"
CEPR Discussion Papers
1473, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Frankel, Jeffrey A & Rose, Andrew K, 1998.
"The Endogeneity of the Optimum Currency Area Criteria ,"
Economic Journal ,
Royal Economic Society, vol. 108(449), pages 1009-25, July.
[Downloadable!] (restricted)
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Michał Gradzewicz & Krzysztof Makarski, 2009.
"The Macroeconomic Effects of Losing Autonomous Monetary Policy after the Euro Adoption in Poland ,"
National Bank of Poland Working Papers
58, National Bank of Poland, Economic Institute.
[Downloadable!]
Anna Lipinska, 2008.
"The Maastricht Convergence Criteria and Optimal Monetary Policy for the EMU Accession Countries ,"
Working Paper Series
896, European Central Bank.
[Downloadable!]
Other versions: Lipinska, Anna, 2008.
"The Maastricht Criteria and Optimal Monetary and Fiscal Policy Mix for the EMU Accession Countries ,"
MPRA Paper
16376, University Library of Munich, Germany.
[Downloadable!]
Access and
download statistics Did you know? The RePEc project started in 1997. Its precursor, NetEc, dates back to 1993.
This page was last updated on 2009-12-9.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .