Monetary Union

Zhiguo He · Arvind Krishnamurthy · Konstantin Milbradt

What makes a sovereign bond a safe asset is not the strength of its fundamentals in absolute terms but their strength relative to the alternatives, together with the size of the debt outstanding -- …

Robert A. Mundell

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 …

A. Alesina · R. J. Barro

This 2002 Quarterly Journal of Economics paper by Alberto Alesina and Robert Barro builds a formal model of which countries should give up their own currency and adopt another country's, combining a …

Mirko Abbritti · Sebastian Weber

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 …

A. K. Rose

This 2000 Economic Policy paper by Andrew Rose asks a simple question -- does sharing a currency boost trade, and by how much -- using a large cross-country panel rather than the handful of …

Francesco Giavazzi · Marco Pagano

This 1988 European Economic Review paper by Francesco Giavazzi and Marco Pagano asks why a high-inflation country would voluntarily submit to the EMS's fixed-but-adjustable exchange-rate discipline, …