Holtemöller, Oliver (2007): The Effects of Joining a Monetary Union on Output and Inflation Variability in Accession Countries.
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New EU member countries are supposed to adopt the Euro as soon as economic convergence is achieved. This paper analyzes the effects of joining a monetary union on output and inflation variability in small acceding countries. An asymmetric macroeconomic two-country model is specified and combined with two different monetary policy regimes: (i) national monetary policy, (ii) monetary union. The performance of the two regimes is analyzed in terms of inflation and output variability for a broad range of structural parameter specifications.
|Item Type:||MPRA Paper|
|Original Title:||The Effects of Joining a Monetary Union on Output and Inflation Variability in Accession Countries|
|Keywords:||European monetary union; open economy macroeconomic models; optimal monetary policy|
|Subjects:||F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F42 - International Policy Coordination and Transmission
E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics
|Depositing User:||Oliver Holtemöller|
|Date Deposited:||08. May 2008 04:31|
|Last Modified:||11. Feb 2013 18:01|
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