IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/358.html
   My bibliography  Save this paper

Monetary Interdependence under Alternative Exchange-Rate Regimes: A European Perspective

Author

Listed:
  • van der Ploeg, Frederick

Abstract

This paper analyses and compares the effects of common demand and supply shocks on the setting of optimal monetary policies under a clean float, a managed exchange rate system (such as the EMS) and a monetary union, when welfare depends on unemployment and the cost of living. The results suggest that monetary union yields the smallest welfare loss and a float the greatest, and that the EMS gives France and Italy the opportunity to appreciate their currencies and reduce their welfare loss at the expense of Germany. The robustness of the results with respect to rational expectations and wage-price dynamics is verified with the aid of differential game theory and numerical simulation.

Suggested Citation

  • van der Ploeg, Frederick, 1989. "Monetary Interdependence under Alternative Exchange-Rate Regimes: A European Perspective," CEPR Discussion Papers 358, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:358
    as

    Download full text from publisher

    File URL: http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=358
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Henri Sterdyniak & Pierre Villa, 1993. "Régimes de change et coordination des politiques économiques en Europe," Revue de l'OFCE, Programme National Persée, vol. 43(1), pages 307-348.
    2. Patrick Artus, 1992. "Passage à l'union économique et monétaire en Europe : effets sur la croissance et les politiques budgétaires," Économie et Prévision, Programme National Persée, vol. 106(5), pages 123-137.
    3. repec:spo:wpmain:info:hdl:2441/5265 is not listed on IDEAS
    4. repec:hal:spmain:info:hdl:2441/5265 is not listed on IDEAS

    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:cpr:ceprdp:358. 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: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    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.