JOURNAL ARTICLE
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Wechselkursunion und Stabilitätspolitik
Feuerstein, Switgard | Siebke, Jürgen
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 110 (1990), Iss. 3 : pp. 359–379
2 Citations (CrossRef)
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Article Details
Feuerstein, Switgard
Siebke, Jürgen
Cited By
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Trade and Tax Policy, Inflation and Exchange Rates
The International Transmission of Economic Shocks in a Three-Country World under Mixed Exchange Rates
Läufer, Nikolaus K. A. | Sundararajan, Srinivasa1997
https://doi.org/10.1007/978-3-642-60846-9_5 [Citations: 0] -
Währungspolitik in der Übergangsphase zur Europäischen Währungsunion
Bernhard, Herz,
Credit and Capital Markets - Kredit und Kapital, Vol. 25 (1992), Iss. 2 P.185
https://doi.org/10.3790/ccm.25.2.185 [Citations: 1]
Abstract
In the paper a model of an exchange rate union with five endogenous variables is presented. For simplicity it is assumed that the two member countries of the exchange rate union react symmetrically to changes of the endogenous variables. According to a method of Aoki (1981), these symmetry assumptions allow the partition of the model into two independent systems of equations. It is shown that the joint exchange rate which is floating against the rest of the world is an important channel of transmission of exogenous shocks between the two countries. In particular it is possible that exogenous disturbances are transmitted negatively to the other member country. Despite the symmetry assumptions, however, the signs of several multipliers of the comparative static analysis remain indeterminate. It follows that, when analyzing multi-country models, one faces a trade-off between comprehensiveness of the model and uniqueness and interpret ability of the results.