The "Walters Critique" of the EMS--A Case of Inconsistent Expectations?

Marcus Miller and Alan Sutherland ()

The Manchester School of Economic & Social Studies, 1991, vol. 59, issue 0, 23-37

Abstract: Alan Walters has suggested that the European Monetary System will prove dynamically unstable when capital controls are removed. The argument is analyzed within a model where overlapping contracts generate price inertia. In this context, it is found that the short-run effects predicted by Walters only arise when the credibility of the peg differs as between the labor and financial markets: but even if such a difference exists, the system is stable in the long run. Copyright 1991 by Blackwell Publishers Ltd and The Victoria University of Manchester

Date: 1991
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Related works:
Working Paper: The 'Walters Critique' of the EMS - A Case of Inconsistent Expectations (1990)
Working Paper: The `Walters' Critique of the EMS: A Case of Inconsistent Expectations (1990)
Working Paper: The 'Walters Critique' of the EMS - A Case of Inconsistent Expectations (1990)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:manch2:v:59:y:1991:i:0:p:23-37

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