Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86879
Authors: 
Schabert, Andreas
Year of Publication: 
2011
Series/Report no.: 
Tinbergen Institute Discussion Paper 11-027/2
Abstract: 
We examine monetary policy options for a small open economy where sovereign default might occur due to intertemporal insolvency. Under interest rate policy and floating exchange rates the equilibrium is indetermined. Under a fixed exchange rate the equilibrium is uniquely determined and independent of sovereign default.
Subjects: 
Exchange rate peg
interest rate policy
equilibrium determination
sovereign default
public debt
JEL: 
E52
E63
F31
F41
Document Type: 
Working Paper

Files in This Item:
File
Size
165.65 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.