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Monetary Unions and External Shocks

Author

Listed:
  • Etienne Farvaque

    (University of Lille 1)

  • Norimichi Matsueda

    (Kwansei Gakuin University)

Abstract

According to Bordo and James [2008, “A long term perspective on the Euro, ” NBER Working Paper, No. 13815], history shows that multinational monetary unions have dissolved mainly under the consequences of external shocks. This paper provides a theoretical model demonstrating their point.

Suggested Citation

  • Etienne Farvaque & Norimichi Matsueda, 2008. "Monetary Unions and External Shocks," Discussion Paper Series 42, School of Economics, Kwansei Gakuin University, revised Oct 2008.
    • Handle: RePEc:kgu:wpaper:42
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    References listed on IDEAS

    as
    1. Michael D. Bordo & Harold James, 2008. "A Long Term Perspective on the Euro," NBER Working Papers 13815, National Bureau of Economic Research, Inc.
    2. Rudi Dornbusch & Carlo Favero & Francesco Giavazzi, 1998. "Immediate challenges for the European Central Bank," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 13(26), pages 16-64.
    3. Corinne Aaron-Cureau & Hubert Kempf, 2006. "Bargaining over monetary policy in a monetary union and the case for appointing an independent central banker," Oxford Economic Papers, Oxford University Press, vol. 58(1), pages 1-27, January.
    4. Frankel, Jeffrey A & Rose, Andrew K, 1998. "The Endogeneity of the Optimum Currency Area Criteria," Economic Journal, Royal Economic Society, vol. 108(449), pages 1009-1025, July.
    5. Frankel, Jeffrey A. & Rose, Andrew K., 1997. "Is EMU more justifiable ex post than ex ante?," European Economic Review, Elsevier, vol. 41(3-5), pages 753-760, April.
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    2. Saito, Yuta, 2025. "Exit expectations and the optimal design of a currency union," Economics Letters, Elsevier, vol. 247(C).
    3. Yuta Saito, 2018. "Bargaining over Monetary Policy and Optimal Committee Composition in a Currency Union," Economics Bulletin, AccessEcon, vol. 38(4), pages 1986-1996.
    4. Yuta Saito, 2022. "A Note on Time Inconsistency and Endogenous Exits from a Currency Union," Games, MDPI, vol. 13(2), pages 1-8, February.
    5. Saito, Yuta, 2020. "A note on exit and inflation bias in a currency union," MPRA Paper 102717, University Library of Munich, Germany.

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    More about this item

    Keywords

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    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

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