Leadership and Cooperation in the European Monetary System: A Simulation Approach / Nouriel Roubini.

Format:

Book

Author/Creator:

Roubini, Nouriel.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w3044.

NBER working paper series no. w3044

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Leadership and Cooperation in the European Monetary System

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1989.

Summary:

To assess the importance of economic interdependence and the potential gains from policy coordination in the European area, this paper analyzes the international transmission of policies and disturbances in a rational expectation dynamic general equilibrium simulation model of the work economy, and applies the analysis to the study of the European Monetary System. International spillover effects and potential gains from coordination appear to be small under the assumption of flexible exchange rates in the European area. The implications of a fixed rate EMS with German leadership are compared with those of a cooperative fixed exchange rate regime. Finally, capital controls under fixed rates fails to insure policy autonomy and insulation from external disturbances for the countries restricting the capital movements.

Notes:

Print version record

July 1989.