IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/1991-086.html
   My bibliography  Save this paper

The Effect of the ERMon Participating Economies

Author

Listed:
  • Mr. Tamim Bayoumi

Abstract

The effect of membership of the ERM on macroeconomic performance is analyzed using vector autoregression techniques. The results indicate that while the ERM has had little effect on the nature of the shocks hitting the economies, it has had a significant effect on the response of member countries to these shocks. In addition, long-time members of the ERM have significantly more correlated shocks than other countries. These results conform to the thesis that the ERM represents a move by countries with relatively similar underlying shocks to coordinate macroeconomic policy.

Suggested Citation

  • Mr. Tamim Bayoumi, 1991. "The Effect of the ERMon Participating Economies," IMF Working Papers 1991/086, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:1991/086
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=964
    Download Restriction: no
    ---><---

    Other versions of this item:

    More about this item

    Keywords

    WP; exchange rate; ERM member; supply curve; open economy; ERM correlation coefficients; demand and supply shock; ERM country; supply and demand demand shock; Supply shocks; Exchange rate arrangements; Conventional peg; Floating exchange rates; Exchange rate flexibility; Europe;
    All these keywords.

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:1991/086. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.