Arbeitspapier

Exchange Rate Variability Inside and Outside the EMU

An often heard view is that exchange rate variability will decrease for a country that joins the EMU. This is not necessarily true. Both real and nominal exchange rate variability increase under certain circumstances when asymmetric demand shocks occur inside or outside the union. These results are obtained theoretically within a standard international macro-model but they also remain valid in a numerical simulation of this model.

Language: Englisch

Bibliographic citation: Series: Working Paper ; No. 1998:26

Classification: Wirtschaft
Foreign Exchange
International Monetary Arrangements and Institutions
Financial Aspects of Economic Integration
Open Economy Macroeconomics

Subject: Exchange rate variability
EMU
asymmetric shocks

Event: Geistige Schöpfung

(who): Bergbom, Lennart

Event: Veröffentlichung

(who): Uppsala University, Department of Economics

(where): Uppsala

(when): 1998

Handle: http://hdl.handle.net/10419/82934

URN: urn:nbn:se:uu:diva-2435

Last update: 10.03.2025, 11:45 AM CET

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Object type

Arbeitspapier

Associated

Bergbom, Lennart
Uppsala University, Department of Economics

Time of origin

1998

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Exchange Rate Variability Inside and Outside the EMU

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Other Objects (12)

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Outside, inside, 2.. 1961 - 1966

Outside, inside, 1.. 1954 - 1961

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Nancy Holt - inside, outside

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Outside, inside, 2.. 1961 - 1966

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