Logo
Munich Personal RePEc Archive

The Nominal Exchange Rate Implication of VAT Harmonization in EEC

Dai, Meixing (1995): The Nominal Exchange Rate Implication of VAT Harmonization in EEC.

[thumbnail of MPRA_paper_13860.pdf]
Preview
PDF
MPRA_paper_13860.pdf

Download (146kB) | Preview

Abstract

This paper examines, in a one-good two-country Cournot competition model, the implication of European VAT reform on the nominal exchange rate parities which will be pegged in the third stage of monetary union. As result of the reform, the deutchmark needs to be reevaluated so as to prevent generating systematic external disequilibrium of some other European countries, which is inconsistent with pegging nominal exchange parities of European currencies.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.