Australia-New Zealand Currency Union: A Structural Approach

Daisy McGregor ()
Additional contact information
Daisy McGregor: School of Economics, University of Adelaide

No 2010-18, School of Economics and Public Policy Working Papers from University of Adelaide, School of Economics and Public Policy

Abstract: This paper compares an Australia-New Zealand currency union to a purely fl oating exchange rate regime in the context of a structural, two-country open economy model. Micro-foundations support policy assessment by facilitating direct calculation of household welfare. Analysis focuses on changing business cycle volatilities; the role of risk is not considered. At benchmark calibration currency union is welfare reducing for both Australia and New Zealand. Sensitivity analyses reveal these results thttps://media.adelaide.edu.au/economics/rees of shock correlation and shock transmission.

Keywords: currency union; welfare analysis; exchange rate regime; Australia; New Zealand (search for similar items in EconPapers)
JEL-codes: F22 F33 F41 F42 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2010-08
New Economics Papers: this item is included in nep-cba, nep-mon and nep-opm
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.economics.adelaide.edu.au/research/papers/doc/wp2010-18.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.economics.adelaide.edu.au/research/papers/doc/wp2010-18.pdf [301 https://economics.adelaide.edu.au/research/papers/doc/wp2010-18.pdf]--> https://economics.adelaide.edu.au/research/papers/doc/wp2010-18.pdf [301 Moved Permanently]--> https://able.adelaide.edu.au/economics-and-public-policy/research/papers/doc/wp2010-18.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:adl:wpaper:2010-18

Access Statistics for this paper

More papers in School of Economics and Public Policy Working Papers from University of Adelaide, School of Economics and Public Policy Contact information at EDIRC.
Bibliographic data for series maintained by Qazi Haque ().