Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82934
Authors: 
Bergbom, Lennart
Year of Publication: 
1998
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 1998:26
Abstract: 
An often heard view is that exchange rate variability will decrease for a country that joins the EMU. This is not necessarily true. Both real and nominal exchange rate variability increase under certain circumstances when asymmetric demand shocks occur inside or outside the union. These results are obtained theoretically within a standard international macro-model but they also remain valid in a numerical simulation of this model.
Subjects: 
Exchange rate variability
EMU
asymmetric shocks
JEL: 
F31
F33
F36
F41
Document Type: 
Working Paper

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