Real Wage Rigidities, Fiscal Policy, and the Stability of EMU in the Transition Phase /
EMU started with eleven member countries as scheduled on January 1, 1999. The paper shows that the primacy of politics over economics in this decision could have serious consequences concerning the stability of EMU in the transition phase. Speculative attacks against currencies which are in economic...
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| Andere auteurs: | , |
| Formaat: | Tijdschrift |
| Taal: | English |
| Gepubliceerd in: |
Washington, D.C. :
International Monetary Fund,
1999.
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| Reeks: | IMF Working Papers; Working Paper ;
No. 1999/083 |
| Online toegang: | Full text available on IMF |
| Samenvatting: | EMU started with eleven member countries as scheduled on January 1, 1999. The paper shows that the primacy of politics over economics in this decision could have serious consequences concerning the stability of EMU in the transition phase. Speculative attacks against currencies which are in economic distress due to asymmetric shocks can still happen. A speculative attack as such cannot force a country out of EMU. However, the country concerned might voluntarily decide to leave the system as the costs of staying inside EMU, e.g., due to further rising unemployment, become too large to bear. |
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| Beschrijving item: | <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required |
| Fysieke beschrijving: | 1 online resource (33 pages) |
| Formaat: | Mode of access: Internet |
| ISSN: | 1018-5941 |
| Toegang: | Electronic access restricted to authorized BRAC University faculty, staff and students |