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Does detrending matter for the determination of the reference cycle and the selection of turning points?

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  • Fabio Canova

Abstract

Recent research in contract theory views ownership as a substitute for complete contracts. Here, this approach is applied to monetary integration. Countries face a coordination problem conducting monetary policy. Negative spillovers ensure uncoordinated policy generates too high inflation. Ex ante, policymakers can undertake politically costly economic reform. This has a positive spillover because it improves the outcome of the monetary policy game. Ex post contracting over policy may be possible, but it supposed that ex ante contracting over reform and monetary policy is not. This paper analyzes when monetary union is a good substitute for this inability to commit.
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Suggested Citation

  • Fabio Canova, 1994. "Does detrending matter for the determination of the reference cycle and the selection of turning points?," Economics Working Papers 113, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 1995.
  • Handle: RePEc:upf:upfgen:113
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    References listed on IDEAS

    as
    1. Oriol Amat & John Blake & Julia Clarke, 1994. "Bank financial analyst's response to lease capitalization in Spain," Economics Working Papers 89, Department of Economics and Business, Universitat Pompeu Fabra.
    2. Daniel Serra, 1996. "The Coherent Covering Location Problem," Papers in Regional Science, Wiley Blackwell, vol. 75(1), pages 79-101, January.
    3. Guillem López & Adam R. Wagstaff, 1992. "Indicadores de eficiencia en el sector hospitalario," Economics Working Papers 11, Department of Economics and Business, Universitat Pompeu Fabra.
    4. Giorgia Giovannetti, 1993. "Import pricing, domestic pricing and market structure," Economics Working Papers 71, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 1994.
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