Resource title

Alternative Paths Towards EMU: Lessons from an Expanded Mundell-Fleming Model for the Accession Countries

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Resource description

A small expectations-expanded "Mundell-Fleming" model is built for the European Union Accession Countries and estimated to assess the optimality of different exchange rate regimes (a peg and a float) through a simple welfare function. Floating appears as the best option for most of the countries in our sample, and this conclusion is robust to changes in the weights of the welfare function. The "shock absorbing" qualities of the regimes for different types of innovations is assessed via a VAR and a structural model, and here again the float seems to outperform a harder regime, in the emergence of temporary shocks.

Resource author

LĂșcio Vinhas de Souza, Elisabeth Ledrut

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/17815

Resource license

Adapt according to the presented license agreement and reference the original author.