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...

وصف كامل

التفاصيل البيبلوغرافية
المؤلف الرئيسي: Thode, Eric
مؤلفون آخرون: Berthold, Norbert, Fehn, Rainer
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 1999.
سلاسل:IMF Working Papers; Working Paper ; No. 1999/083
الوصول للمادة أونلاين:Full text available on IMF
الوصف
الملخص: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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وصف مادي:1 online resource (33 pages)
التنسيق:Mode of access: Internet
تدمد:1018-5941
وصول:Electronic access restricted to authorized BRAC University faculty, staff and students