Year: 2000
Type: article
Abstract: We analyze the conduct of monetary policy in a currency union in the face of asymmetric shocks. In particular, we compare the stabilization properties of a currency union versus alternative exchange rate arrangements. The relative performance of a currency union is shown to depend on the extent of economic integration in patterns of consumption and production and on the relative weights placed on price stability versus employment stability in the monetary authority's objective function. JEL classification: F33; F40
Author: Philip R. Lane
Institution: Trinity College Dublin
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2153441357