Menu Expand

Real Exchange Rates, Structural Reforms and Monetary Union

Cite JOURNAL ARTICLE

Style

Hefeker, C. Real Exchange Rates, Structural Reforms and Monetary Union. Credit and Capital Markets – Kredit und Kapital, 42(2), 195-212. https://doi.org/10.3790/kuk.42.2.195
Hefeker, Carsten "Real Exchange Rates, Structural Reforms and Monetary Union" Credit and Capital Markets – Kredit und Kapital 42.2, 2009, 195-212. https://doi.org/10.3790/kuk.42.2.195
Hefeker, Carsten (2009): Real Exchange Rates, Structural Reforms and Monetary Union, in: Credit and Capital Markets – Kredit und Kapital, vol. 42, iss. 2, 195-212, [online] https://doi.org/10.3790/kuk.42.2.195

Format

Real Exchange Rates, Structural Reforms and Monetary Union

Hefeker, Carsten

Credit and Capital Markets – Kredit und Kapital, Vol. 42 (2009), Iss. 2 : pp. 195–212

Additional Information

Article Details

Author Details

Prof. Dr. Carsten Hefeker, Universität Siegen, Fachbereich 5 Europäische Wirtschaftspolitik, D-57068 Siegen.

Abstract

Real Exchange Rates, Structural Reforms and Monetary Union

The paper addresses the question what effects the enlargement of a monetary union will have on necessary structural reforms in member countries with high and low degrees of distortions. I show that monetary union has asymmetric effects on reform efforts and under what circumstances governments increase their reform efforts. Depending on asymmetries in the degrees of distortions, the stance of monetary policy, and countries' openness, one could expect convergence or divergence in reform efforts. (JEL E61, E63, F33)