Download or read book The Theory of Optimum Currency Areas Trade Adjustment and Trade written by Jacques Melitz and published by . This book was released on 1993 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Theory of Optimum Currency Areas and Exchange rate Flexibility written by Edward Tower and published by . This book was released on 1976 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Model of an Optimum Currency Area written by Mr.Luca Antonio Ricci and published by International Monetary Fund. This book was released on 1997-06-01 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the circumstances under which it is beneficial to participate in a currency area. A two-country monetary model of trade with nominal rigidities encompasses the real and monetary arguments suggested by the optimum currency area literature: correlation of real shocks, international factor mobility, fiscal adjustment, openness, difference in national inflationary biases, correlation of monetary shocks, and benefits of a single currency. The effect of openness on the net benefits is ambiguous, contrary to the usual argument that more open economies are better candidates for a currency area. Countries do not necessarily agree on whether a given currency union should be created.
Download or read book Optimum Currency Areas written by Mr.Leonardo Leiderman and published by International Monetary Fund. This book was released on 1997-06-17 with total page 126 pages. Available in PDF, EPUB and Kindle. Book excerpt: Robert Mundell's pioneering theory of optimum currency areas is revisited, with experts from the IMF, the BIS, the European Investment Bank, academia, European think tanks, and the Bank of Israel looking at its current practical applications, especially in the context of the forthcoming European Economic and Monetary Union (EMU). Robert Mundell himself offers an update to help in assessing the implications and consequences of EMU.
Download or read book A Formal Model of Optimum Currency Areas written by Mr.Tamim Bayoumi and published by International Monetary Fund. This book was released on 1994-04-01 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: A model of optimum currency areas is presented using a general equilibrium model with regionally differentiated goods. The choice of a currency union depends upon the size of the underlying disturbances, the correlation between these disturbances, the costs of transactions across currencies, factor mobility across regions, and the interrelationships between demand for different goods. It is found that, while a currency union can raise the welfare of the regions within the union, it unambiguously lowers welfare for those outside the union.
Download or read book Optimum currency area Is a fixed exchange rate regime more suitable than a flexible one written by Sofia Roth and published by GRIN Verlag. This book was released on 2018-06-04 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2011 in the subject Economics - Macro-economics, general, , language: English, abstract: This term paper outlines the theory of Optimum Currency Area (OCA), also known as an Optimal Currency Region (OCR). It also deals with the question under which conditions it is more suitable to have a fixed exchange rate regime or a flexible exchange rates regime in an OCA. The theory of OCA was developed in the early 1960s and deals with mixed, complicated issues of international macroeconomics and "emerged from the debate on the advantages and disadvantages of fixed versus flexible exchange rate regimes". Moreover the theory "attempts to answer the question under which circumstances it is beneficiary for a country or region to constitute a common currency area with other countries or region". This question was analyzed and contributed by the pioneered work of Mundell (1961). Other contributors at the beginning of this theory were McKinnon (1962) and Kenen (1969). Their cognition were based on founding’s by Friedman (1953) and Meade (1957).
Download or read book The Economics of Common Currencies written by Harry G. Johnson and published by Routledge. This book was released on 2013-07-18 with total page 267 pages. Available in PDF, EPUB and Kindle. Book excerpt: Gathering together the papers presented at the Madrid Conference on Optimum Currency Areas in 1970 this volume represents one of the first complete surveys of the theory and policy implication of monetary integration. The book discusses: the economics of fixed exchange rates relevant to monetary relations within an integrated monetary area the evolution of economic doctrine and a survey of optimum currency area theory problems of policy co-ordination within a currency area relevance of the monetary-fiscal policy mix problems of monetary union in developing countries the book predicted the establishment of an European currency but presented the case for greater flexibility of exchange rates as an alternative to currency unification.
Download or read book The Theory of Optimum Currency Areas written by Hsien Yun Pu and published by . This book was released on 2005 with total page 330 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Model of an Optimum Currency Area written by Luca A. Ricci and published by . This book was released on 2006 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the circumstances under which it is beneficial to participate in a currency area. A two-country monetary model of trade with nominal rigidities encompasses the real and monetary arguments suggested by the optimum currency area literature: correlation of real shocks, international factor mobility, fiscal adjustment, openness, difference in national inflationary biases, correlation of monetary shocks, and benefits of a single currency. The effect of openness on the net benefits is ambiguous, contrary to the usual argument that more open economies are better candidates for a currency area. Countries do not necessarily agree on whether a given currency union should be created.
Download or read book Optimum Currency Areas A Monetary Union for Southern Africa written by Christian Sorgenfrei and published by Diplomica Verlag. This book was released on 2011-03 with total page 89 pages. Available in PDF, EPUB and Kindle. Book excerpt: With the current situation in the European Monetary Union in mind, a Monetary Union in other parts of the world seems highly inadvisable. Nevertheless, Africa has some of the oldest Monetary arrangements in the world, dating back to the beginning of the 19th century. Is Africa particularly qualified for a Monetary Union? And furthermore, what features are necessary to make Monetary Arrangements between countries endurable? This study evaluates the prospects and the feasibility of a monetary union in the Southern African Development Community (SADC) from an economic point of view. Both the theory of optimum currency areas and the recent example of the European Monetary Union are employed to analyze the pros and cons of monetary unification. The theoretical implications are operationalized, first, by a broad analysis of economic and socio graphic data, and second, by estimating the degree of structural shock synchronization between SADC countries. Results obtained by an Autoregressive and Vector Autoregressive model indicate that a monetary union which includes all SADC members is neither desirable nor feasible in the foreseeable future. However, the study concludes that a small subset of countries, including South Africa, Namibia, Swaziland, Lesotho, Mozambique, Botswana and Zambia, could gain from forming a smaller monetary union.
Download or read book Essays in International Economics written by Peter B. Kenen and published by Princeton University Press. This book was released on 2019-01-29 with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt: Written form 1957 through 1978 by one of the foremost authorities in the field of international economics, this collection of Peter Kenen's previously published essays deals with issues in the pure theory of international trade, international monetary theory, and international monetary reform. The essays in Part I, "Trade, Tariffs, and Welfare," concern the roles of tangible and human capital in the determination of trade patterns, the joint determination of demand conditions and trade patterns, the gains from international trade, and the effects of migration on economic welfare. Part II, "International Monetary Theory and Policy," contains essays on the theory of gold-exchange standard, the determination of forward exchange rates, the demand for international reserves, economic integration and the delineation of currency areas, and the process of balance of payments adjustment under pegged and floating exchange rates. The essays in Part III, "Monetary Reform and the Dollar," are arranged in chonological order, from 1963 through 1977, and focus on the problems and progress of international monetary reform and on the functioning of the present international monetary system. Peter B. Kenen is Walker Professor of Economics and International Finance at Princeton University. The Princeton Sereies of Collected Essays provides facsimile reprints, in paperback and in cloth, of important articles by leading scholars. Originally published in 1981. The Princeton Legacy Library uses the latest print-on-demand technology to again make available previously out-of-print books from the distinguished backlist of Princeton University Press. These editions preserve the original texts of these important books while presenting them in durable paperback and hardcover editions. The goal of the Princeton Legacy Library is to vastly increase access to the rich scholarly heritage found in the thousands of books published by Princeton University Press since its founding in 1905.
Download or read book Monetary Policy and Macroeconomic Stabilization written by Ole Roste and published by Routledge. This book was released on 2017-09-08 with total page 214 pages. Available in PDF, EPUB and Kindle. Book excerpt: As a fundamental review and critique of activist economic policies, this book is a unique contribution to classical political economy. "Monetary Policy and Macroeconomic Stabilization" is about macroeconomic stabilization policy, with emphasis on the value of a distinct national monetary policy to growth. Ole Bjorn Roste's argument is for public officials to restrain themselves in the pursuit of policy. As the author notes: when you know less, you should do less.The history of modern macroeconomics started in 1936 with the publication of Keynes' "General Theory of Employment, Interest, and Money". The problems of the Great depression of the 1930s paved the way for a change of focus, from the long run to economic fluctuations in the short run, and from nominal to real variables, such as unemployment and aggregate output.Keynes offered clear policy implications in tune with the times. Because economic adjustment was slow, waiting for the economy to recover by itself was irresponsible. Particularly fiscal policy was essential to return to high employment. Monetary policy could affect aggregate demand through Interest rates, but was less important. Roste discusses the role of monetary policy, starting out with the implications of the theory of optimum currency areas (OCAs). This is followed by estimates of the output loss associated with disinflation policy (the sacrifice ratio) for six OECD economies. Further, Roste models the dynamic adjustment to negative, local labor-market shocks, with particular relevance to Scandinavia, in a final section.The idea that governments should pursue stabilizing fiscal or monetary policies with regard to real variables is often taken for granted by the public, if not by economists. Among the reasons for skepticism, is the presence of differing views on how economies really work, that the state of a given economy becomes known only after a time lag, and that economic agents react to policy and expectations of policy. For these reasons, the effects of policy are generally uncertain. This book explains why the role of history is critical to the study of macroeconomics.p>
Download or read book Currency Areas written by John R. Presley and published by Macmillan of Canada : Maclean-Hunter Press. This book was released on 1976 with total page 136 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Monetary Integration written by Warner Max Corden and published by Princeton, N.J. : International Finance Section, Princeton University. This book was released on 1972 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Empirical Investigation of Optimum Currency Area Theory Business Cycle Synchronization and Intra Industry Trade written by Lydia Li and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The dissertation is mainly made up of three empirical theses on the Optimum Currency Area theory, business cycle synchronization, and intra-industry trade. The second chapter conducts an empirical test into the theory of Optimum Currency Area. I investigate the feasibility of creating a currency union in East Asia by examining the dominance and symmetry of macroeconomic shocks. Relying on a series of structural Vector Autoregressive models with long-run and block exogeneity restrictions, I identify a variety of macroeconomic disturbances in eleven East Asian economies. To examine the nature of the disturbances, I look into the forecast error variance decomposition, correlation of disturbances, size of shocks, and speed of adjustments. Based on both statistical analysis and economic comparison, it is found that two groups of economies are subject to dominant and symmetrical domestic supply shocks, and that the two groups respond quickly to moderate-sized shocks. Therefore, it is economically feasible for the two groups of economies to foster common currency zones. The third chapter investigates the different effects of intra- and inter-industry trade on business cycle synchronization, controlling for financial market linkage and monetary policy making. The chapter is the first attempt to use intra- and inter-industry trade simultaneously in Instrument Variable estimations. The evidence in my paper is supportive that intra-industry trade increases business cycle synchronization, while inter-industry trade brings about divergence of cycles. The findings imply that country pairs with higher intra-industry trade intensity are more likely to experience synchronized business cycles and are more feasible to join a monetary union. My results also show that financial integration and monetary policy coordination provide no explanation for synchronization when industry-level trade are accounted for. The fourth chapter extends the third chapter and explores how the characteristics of global trade network influence intra-industry trade. Borrowing the concept of structural equivalence, the similarity of two countries' aggregate trade relations with other countries, from the social network analysis, this study incorporates this measure of trade network to the augmented gravity model of intra-industry trade. I build up two fixed effects models to analyze intra-industry trade in the raw material and final product sectors among 182 countries from 1962 through 2000. Structural equivalence promotes intra-industry trade flows in the final product sector, but it does not influence intra-industry trade in the crude material sector. Moreover, structural equivalence has been increasingly important in boosting intra-industry trade over time.
Download or read book Optimum currency area theory trade integration and EMU enlargement written by Jarko Fidrmuc and published by . This book was released on 2000 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Handbook of the History of Money and Currency written by Stefano Battilossi and published by Springer. This book was released on 2020-03-13 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This handbook provides a comprehensive overview of state-of-the-art research in the field of monetary and financial history. The authors comprise different generations of leading scholars from universities worldwide. Thanks to its unrivaled breadth both in time (from antiquity to the present) and geographical coverage (from Europe to the Americas and Asia), the volume is set to become a key reference for historians, economists, and social scientists with an interest in the subject. The handbook reflects the existing variety of scholarly approaches in the field, from theoretically driven macroeconomic history to the political economy of monetary institutions and the historical evolution of monetary policies. Its thematic sections cover a wide range of topics, including the historical origins of money; money, coinage, and the state; trade, money markets, and international currencies; money and metals; monetary experiments; Asian monetary systems; exchange rate regimes; monetary integration; central banking and monetary policy; and aggregate price shocks.
