Mundell poses a deceptively simple question: if a currency area is defined as "a domain within which exchange rates are fixed," what is the right size for one? Starting from a stylized two-entity …
PublishedJournal of Money, Credit and BankingOnline 9 Sep 2024Published Aug 2026
This paper develops a two-country currency union DSGE model with endogenous TFP growth and product and labor market frictions to assess how cross-country differences in market regulation affect …
Outlining the fiscal theory of the price level and its implications for monetary policy under inflationary and deflationary stress, Sims argues that the Maastricht Treaty's elaborate monetary …