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! ]
Monetary regime choice in the accession countries - a theoretical analysis Author info | Abstract | Publisher info | Download info | Related research | Statistics Anna Lipinska () (IDEA Universitat Autonoma de Barcelona)
Additional information is available for the following
registered author(s):
This paper studies the choice of the monetary regime in a small open economy with special focus on the EMU accession countries. In the framework of a two - country DSGE model we conduct policy experiments consisting in analysing the effects of different monetary regimes (roughly representing the current choices of the accession countries) on the dynamics and volatility of an accession economy. We study the real exchange rate determination in the long run and the short run as it summarises the pattern of the stabilisation of an accession economy in response to the shocks. Our benchmark analysis indicates that the managed float regime can attain the lowest consumption gap and at the same time guarantee the moderate changes in the nominal interest rate, nominal exchange rate and inflation. However parameters summarising its sensitivity to nominal exchange rate movements and inflation pressures depend on the underlying shocks. Additionally the sensitivity analysis indicates that choice of the monetary regime is dependent also on the specific structure of a small open economy. In particular a small share of nontradables, a high degree of openness and the high pass through are advocates for the managed regimes frequently observed in the accession countries.
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 Society for Computational Economics in its series Computing in Economics and Finance 2006 with number
243.
Download reference. The following formats are available: HTML
(with abstract ),
plain text
(with abstract ),
BibTeX ,
RIS (EndNote, RefMan, ProCite),
ReDIF
Length:
Date of creation: 04 Jul 2006Date of revision:
Handle: RePEc:sce:scecfa:243Contact details of provider: Email: Web page: http://comp-econ.org/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Keywords: monetary regime choice ; real exchange rate dynamics ; accession economies ; Find related papers by JEL classification: F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
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.: Balázs Égert & Imed Drine & Kirsten Lommatzsch & Christophe Rault, 2002.
"The Balassa-Samuelson effect in Central and Eastern Europe: Myth or reality? ,"
William Davidson Institute Working Papers Series
483, William Davidson Institute at the University of Michigan Stephen M. Ross Business School.
[Downloadable!]
Other versions:
Egert, Balazs & Drine, Imed & Lommatzsch, Kirsten & Rault, Christophe, 2003.
"The Balassa-Samuelson effect in Central and Eastern Europe: myth or reality? ,"
Journal of Comparative Economics ,
Elsevier, vol. 31(3), pages 552-572, September.
[Downloadable!] (restricted) Broeck, Mark De & Sløk, Torsten, 2001.
"Interpreting real exchange rate movements in transition countries ,"
BOFIT Discussion Papers
7/2001, Bank of Finland, Institute for Economies in Transition.
[Downloadable!]
Other versions:
Mark de Broeck & Torsten Sløk, .
"Interpreting Real Exchange Rate Movements in Transition Countries ,"
IMF Working Papers
01/56, International Monetary Fund.
[Downloadable!] De Broeck, Mark & Slok, Torsten, 2006.
"Interpreting real exchange rate movements in transition countries ,"
Journal of International Economics ,
Elsevier, vol. 68(2), pages 368-383, March.
[Downloadable!] (restricted) Gilles DUFRENOT & Balazs Egert, 2003.
"Real Exchange Rates in Central and Eastern Europe : What Scope for the Underlying Fundamentals? ,"
Development and Comp Systems
0309001, EconWPA.
[Downloadable!]
Other versions: Linda S. Goldberg, 2005.
"Trade Invoicing in the Accession Countries: Are They Suited to the Euro? ,"
NBER Chapters ,
in: NBER International Seminar on Macroeconomics 2005
National Bureau of Economic Research, Inc.
[Downloadable!]
Other versions: Benigno, Gianluca & Benigno, Pierpaolo, 2008.
"Exchange rate determination under interest rate rules ,"
Journal of International Money and Finance ,
Elsevier, vol. 27(6), pages 971-993, October.
[Downloadable!] (restricted)
Gianluca Benigno & Christoph Thoenissen, 2003.
"Equilibrium Exchange Rates and Supply-Side Performance ,"
Economic Journal ,
Royal Economic Society, vol. 113(486), pages C103-C124, March.
[Downloadable!] (restricted)
Other versions: Guillermo A. Calvo & Carmen M. Reinhart, 2002.
"Fear Of Floating ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 117(2), pages 379-408, May.
[Downloadable!] (restricted)
Other versions:
Reinhart, Carmen & Calvo, Guillermo, 2002.
"Fear of floating ,"
MPRA Paper
14000, University Library of Munich, Germany.
[Downloadable!] Guillermo A. Calvo & Carmen M. Reinhart, 2000.
"Fear of Floating ,"
NBER Working Papers
7993, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Michael B. Devereux, 2003.
"A Macroeconomic Analysis of EU Accession under Alternative Monetary Policies ,"
Journal of Common Market Studies ,
Blackwell Publishing, vol. 41(5), pages 941-964, December.
[Downloadable!] (restricted)
Maurice Obstfeld & Kenneth Rogoff, 1999.
"New Directions for Stochastic Open Economy Models ,"
NBER Working Papers
7313, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Maurice Obstfeld & Kenneth Rogoff, 2000.
"New Directions for Stochastic Open Economy Models ,"
International Finance
0004002, EconWPA.
[Downloadable!] Maurice Obstfeld & Kenneth Rogoff, 1999.
"New Directions for Stochastic Open Economy Models ,"
Center for International and Development Economics Research, Working Paper Series
1015, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
[Downloadable!] Maurice Obstfeld and Kenneth Rogoff., 1999.
"New Directions for Stochastic Open Economy Models ,"
Center for International and Development Economics Research (CIDER) Working Papers
C99-107, University of California at Berkeley.
[Downloadable!] Obstfeld, Maurice & Rogoff, Kenneth, 2000.
"New directions for stochastic open economy models ,"
Journal of International Economics ,
Elsevier, vol. 50(1), pages 117-153, February.
[Downloadable!] (restricted) Jose De Gregorio & Holger C. Wolf, 1994.
"Terms of Trade, Productivity, and the Real Exchange Rate ,"
Working Papers
94-19, New York University, Leonard N. Stern School of Business, Department of Economics.
Other versions: Fischer, Christoph, 2002.
"Real currency appreciation in accession countries: Balassa-Samuelson and investment demand ,"
BOFIT Discussion Papers
8/2002, Bank of Finland, Institute for Economies in Transition.
[Downloadable!]
Other versions:
Fischer, Christoph, 2002.
"Real currency appreciation in accession countries: Balassa-Samuelson and investment demand ,"
Discussion Paper Series 1: Economic Studies
2002,19, Deutsche Bundesbank, Research Centre.
[Downloadable!] Christoph Fischer, 2004.
"Real currency appreciation in accession countries: Balassa-Samuelson and investment demand ,"
Review of World Economics (Weltwirtschaftliches Archiv) ,
Springer, vol. 140(2), pages 179-210, June.
[Downloadable!] (restricted) Claudio Soto, 2003.
"Non-Traded Goods and Monetary Policy Trade-Offs in a Small Open Economy ,"
Working Papers Central Bank of Chile
214, Central Bank of Chile.
[Downloadable!]
Coricelli, Fabrizio & Jazbec, Bostjan, 2004.
"Real exchange rate dynamics in transition economies ,"
Structural Change and Economic Dynamics ,
Elsevier, vol. 15(1), pages 83-100, March.
[Downloadable!] (restricted)
Other versions: Fabrizio CORICELLI & Bostjan JAZBEC & Igor MASTEN, 2004.
"Exchange Rate Pass-Through in Acceding Countries: The Role of Exchange Rate Regimes ,"
Economics Working Papers
ECO2004/16, European University Institute.
[Downloadable!]
Federico Ravenna, 2005.
"The European Monetary Union as a commitment device for new EU member states ,"
Working Paper Series
516, European Central Bank.
[Downloadable!]
Other versions: Bianca De Paoli, 2004.
"Monetary Policy and Welfare in a Small Open Economy ,"
CEP Discussion Papers
dp0639, Centre for Economic Performance, LSE.
[Downloadable!]
Other versions: Devereux, Michael B & Lane, Philip R., 2001.
"Exchange Rates and Monetary Policy in Emerging Market Economies ,"
CEPR Discussion Papers
2874, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions:
Michael B. Devereux & Philip Lane, 2001.
"Exchange Rates and Monetary Policy in Emerging Market Economies ,"
CEG Working Papers
20017, Trinity College Dublin, Department of Economics.
[Downloadable!] Michael B. Devereux & Philip R. Lane, 2000.
"Exchange Rates and Monetary Policy in Emerging Market Economies ,"
Working Papers
072000, Hong Kong Institute for Monetary Research.
[Downloadable!] Michael B. Devereux & Philip Lane, 2001.
"Exchange Rates and Monetary Policy in Emerging Market Economies ,"
Trinity Economics Papers
200111, Trinity College Dublin, Department of Economics.
[Downloadable!] Michael B. Devereux & Philip R. Lane & Juanyi Xu, 2006.
"Exchange Rates and Monetary Policy in Emerging Market Economies ,"
Economic Journal ,
Royal Economic Society, vol. 116(511), pages 478-506, 04.
[Downloadable!] (restricted) Fabrizio Coricelli, 2002.
"Exchange rate policy during transition to the European Monetary Union: The option of euroization ,"
The Economics of Transition ,
The European Bank for Reconstruction and Development, vol. 10(2), pages 405-417, July.
[Downloadable!] (restricted)
Full
references
Access and
download statistics Did you know? Citation analysis on IDEAS includes online papers that are freely accessible and whose text could be automatically analyzed, currently about 210000 papers.
This page was last updated on 2009-11-13.
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 .