Transactions Use of the Ecu in the Transition to EMU: A Model of Network Externalities

Polly REYNOLDS Allen
Additional contact information
Polly REYNOLDS Allen: University of Connecticut

No 1993017, Discussion Papers (REL - Recherches Economiques de Louvain) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: To answer the question under what conditions during the transition to EMU will firms choose the Ecu as their currency for transactions, the paper develops a simple model of a firm's choice of currency for pricing, invoicing and receiving payments for its product-its transactions currency. The focus of the model is the presence of network externalities derived from use of the same currency by others. The model points up the fallacy of focusing only on relative inflation performances of currencies when judging their likely adoption for transactions purposes.

Pages: 22
Date: 1993-03-01
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.jstor.org/stable/40724016 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

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:ctl:louvre:1993017

Access Statistics for this paper

More papers in Discussion Papers (REL - Recherches Economiques de Louvain) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium). Contact information at EDIRC.
Bibliographic data for series maintained by Sebastien SCHILLINGS ().