The 'Walters Critique' of the EMS - A Case of Inconsistent Expectations

Marcus Miller and Alan Sutherland ()

No 268483, Economic Research Papers from University of Warwick - Department of Economics

Abstract: Alan Walters has suggested that the European Monetary System will prove dynamically unstable when capital controls are removed. The argument is analysed within a model which includes overlapping contracts. It is found that the short run effects predicted by Walters only arise when the credibility of the peg differs as between the labour and financial markets: but even if such a difference exists the system is stable in the long run.

Keywords: Financial Economics; Labor and Human Capital (search for similar items in EconPapers)
Pages: 27
Date: 1990-10-10
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: The "Walters Critique" of the EMS--A Case of Inconsistent Expectations? (1991)
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:ags:uwarer:268483

DOI: 10.22004/ag.econ.268483

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