01758cas a2200253 a 4500 AALejournalIMF000589 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451846942 1018-5941 BD-DhAAL BD-DhAAL Ricci, Luca. EMU, Adjustment, and Exchange Rate Variability / Luca Ricci, Peter Isard. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (27 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper uses a three-country, three-good, factor-specific model of trade with wage rigidities to investigate how European Monetary Union (EMU) is likely to affect exchange rate variability. Focusing on international macroeconomic adjustment under both exogenous and optimizing monetary policies, it shows that the relative variability (against external currencies) of the euro (under EMU) and a basket of present currencies (pre-EMU) depends on relative sizes and specialization patterns of EMU countries and the relative importance of different shocks. EMU is likely to decrease (increase) exchange rate variability for shocks to industries in which large (small) EMU countries are specialized. Mode of access: Internet Isard, Peter. IMF Working Papers; Working Paper ; No. 1998/050 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/050/001.1998.issue-050-en.xml IMF e-Library