Matches in SemOpenAlex for { <https://semopenalex.org/work/W1602165784> ?p ?o ?g. }
Showing items 1 to 65 of
65
with 100 items per page.
- W1602165784 abstract "The theory of optimal currency areas, due to Mundell and McKinnon, has enjoyed a revival of interest in the wake of European discussions of monetary union. The basic theme of this old literature is that there are potential gains for stabilization policy in an independent exchange rate and money because rigidity of prices causes an inadequate response of relative prices to shocks. This theme has been taken up recently in empirical work on fixed versus floating exchange rates. This paper examines whether there is support for it in the microfoundations of linked open economies. It uses the cash-in-advance general equilibrium approach of Lucas, following along the lines of Canzoneri and Diba, but focuses on instability and its costs rather than optimal transformation ratios. It finds support for the insights of the optimal currency area literature. The result comes from the cash-in-advance constraint, which causes labour supply to respond to expected inflation (and so money growth) between this and the next period: the household faces an inevitable delay between working (receiving cash) and being able to spend the proceeds. This delay is the microfoundation analogue of the `nominal (price) rigidity' in the optimal currency area models. Though the direction of money supply responses is orthodox (counter-cyclical), however, it is not clear whether it stabilizes prices (though it probably stabilizes output). By contrast, in the empirical work stability has been gauged by the variance of output and prices. Hence this microfoundations model, though in a way supporting the optimal currency area literature, does not mimic what that literature regards as `the real world'." @default.
- W1602165784 created "2016-06-24" @default.
- W1602165784 creator A5080073215 @default.
- W1602165784 date "1993-01-01" @default.
- W1602165784 modified "2023-09-27" @default.
- W1602165784 title "Other People's Money: The Microfoundations of Optimal Currency Areas" @default.
- W1602165784 hasPublicationYear "1993" @default.
- W1602165784 type Work @default.
- W1602165784 sameAs 1602165784 @default.
- W1602165784 citedByCount "4" @default.
- W1602165784 crossrefType "posted-content" @default.
- W1602165784 hasAuthorship W1602165784A5080073215 @default.
- W1602165784 hasConcept C121332964 @default.
- W1602165784 hasConcept C126285488 @default.
- W1602165784 hasConcept C139719470 @default.
- W1602165784 hasConcept C141121606 @default.
- W1602165784 hasConcept C162324750 @default.
- W1602165784 hasConcept C165556158 @default.
- W1602165784 hasConcept C200941418 @default.
- W1602165784 hasConcept C2776218795 @default.
- W1602165784 hasConcept C2776589375 @default.
- W1602165784 hasConcept C2778083465 @default.
- W1602165784 hasConcept C2779971977 @default.
- W1602165784 hasConcept C33332235 @default.
- W1602165784 hasConcept C556758197 @default.
- W1602165784 hasConceptScore W1602165784C121332964 @default.
- W1602165784 hasConceptScore W1602165784C126285488 @default.
- W1602165784 hasConceptScore W1602165784C139719470 @default.
- W1602165784 hasConceptScore W1602165784C141121606 @default.
- W1602165784 hasConceptScore W1602165784C162324750 @default.
- W1602165784 hasConceptScore W1602165784C165556158 @default.
- W1602165784 hasConceptScore W1602165784C200941418 @default.
- W1602165784 hasConceptScore W1602165784C2776218795 @default.
- W1602165784 hasConceptScore W1602165784C2776589375 @default.
- W1602165784 hasConceptScore W1602165784C2778083465 @default.
- W1602165784 hasConceptScore W1602165784C2779971977 @default.
- W1602165784 hasConceptScore W1602165784C33332235 @default.
- W1602165784 hasConceptScore W1602165784C556758197 @default.
- W1602165784 hasLocation W16021657841 @default.
- W1602165784 hasOpenAccess W1602165784 @default.
- W1602165784 hasPrimaryLocation W16021657841 @default.
- W1602165784 hasRelatedWork W1576148272 @default.
- W1602165784 hasRelatedWork W1584347468 @default.
- W1602165784 hasRelatedWork W1668954122 @default.
- W1602165784 hasRelatedWork W1767045027 @default.
- W1602165784 hasRelatedWork W2088472727 @default.
- W1602165784 hasRelatedWork W2140589642 @default.
- W1602165784 hasRelatedWork W2181831617 @default.
- W1602165784 hasRelatedWork W2422079381 @default.
- W1602165784 hasRelatedWork W2496763203 @default.
- W1602165784 hasRelatedWork W2938645731 @default.
- W1602165784 hasRelatedWork W2945875744 @default.
- W1602165784 hasRelatedWork W3122107641 @default.
- W1602165784 hasRelatedWork W3122446863 @default.
- W1602165784 hasRelatedWork W3123798519 @default.
- W1602165784 hasRelatedWork W3125577111 @default.
- W1602165784 hasRelatedWork W3125910179 @default.
- W1602165784 hasRelatedWork W3166970732 @default.
- W1602165784 hasRelatedWork W3192741102 @default.
- W1602165784 hasRelatedWork W3201324116 @default.
- W1602165784 hasRelatedWork W34231724 @default.
- W1602165784 isParatext "false" @default.
- W1602165784 isRetracted "false" @default.
- W1602165784 magId "1602165784" @default.
- W1602165784 workType "article" @default.