Stabilization Policy within a Currency Area

Thomas Moutos and William M Scarth

Scottish Journal of Political Economy, 1988, vol. 35, issue 4, 387-97

Abstract: Beggar-my-neighbor policy problems for EEC countries are examined by considering a two-country currency area model involving real wage rigidity and a floating exchange rate with the rest of the world. Recognition of the supply-side effects of the exchange rate significantly changes earlier results. Copyright 1988 by Scottish Economic Society.

Date: 1988
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