WebDownload or read book China as an Optimum Currency Area - Something to learn for the European Monetary Union? written by Philipp Müller and published by GRIN Verlag. ... Book excerpt: Bachelor Thesis from the year 2012 in the subject Economics - Monetary theory and policy, grade: 2,0, Frankfurt School of Finance & Management, language: English ... WebThis paper examines optimal monetary policy in an open-economy two-country model with sticky prices. We show that currency misalignments are inefficient and lower world welfare. We find that optimal policy must target not only inflation and the output gap, but also the currency misalignment.
Currency Misalignments and Optimal Monetary Policy: A
WebWe compare the cooperative Ramsey monetary policy with standard policy benchmarks as well as with the optimal Ramsey policy in a currency area. Our main results are the following. First, strict PPI targeting becomes excessively procyclical in response to productivity shocks in the presence of financial frictions. WebDeriving optimal monetary policy rules and evaluating welfare under various assumptions regarding currencies for invoicing exports, this paper obtains analytical conditions under which use of vehicle currency in pricing exports actually benefits the vehicle currency country compared with a situation in which each country prices its exports in ... citibank health card login
Inflation persistence and optimal monetary policy in the euro …
WebThis paper aims at identifying potential currency unions in the MENA region based on interest rates' similarity as one of the aspects that affect a monetary union's success. To assess their sustainability, the optimal interest rates (Taylor rates) of the members of each potential union is estimated and used to calculate a stress level index. WebJul 17, 2024 · We illustrate in particular how rule-of-thumb lending standards based on the macroeconomic performance of the core region within the monetary union can translate into destabilizing spill-over effects into the other region, resulting in an overall higher macroeconomic volatility. WebAccording to Mundell, optimum currency area is a region which leads automatically to a … citibank health insurance for employees