Evaluating the EMS and EMU Using Stochastic Simulations: Some Issues

March 1, 1993

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Format: Chicago

Paul R Masson, and Steven A. Symansky Evaluating the EMS and EMU Using Stochastic Simulations: Some Issues, (USA: International Monetary Fund, 1993) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Evaluations of European monetary integration using model simulations have given conflicting results, and the paper attempts to elucidate the reasons for the differences. Several features stand out: how to model realignments; how monetary policy is set for individual countries or for Europe; and how large are risk premium shocks in exchange markets. We quantify the effects of different assumptions relating to these features using MULTIMOD.

Subject: Economic integration, Exchange rates, Foreign exchange, Inflation, Monetary base, Monetary unions, Money, National accounts, Prices, Return on investment

Keywords: EC inflation, EC monetary policy, Ems country, Ems inflation, Europe, Exchange rates, Global, Inflation, Inflation variability, Monetary base, Monetary union, Monetary unions, Return on investment, WP

Publication Details

Pages:

40
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1993/028
Stock No:

WPIEA0281993
ISBN:

9781451844580
ISSN:

1018-5941

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