Journal article
Sunspots, currency substitution, and inflationary finance
Journal of international economics, v 41(1), pp 73-93
1996
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
This paper explores some issues surrounding inflationary finance of government deficits in a two-country world with currency substitution. Each country's monetary policy is assumed to be subordinate to fiscal policy. Private agents, knowing that the monetary authorities cannot commit themselves to fixed policy rules, substitute among the two monies. Each monetary authority is then forced to accomodate the actions of the fiscal authorities and private agents by setting monetary growth rates consistent with their decisions. This framework offers some interesting insights into the behavior of nominal exchange rates and their co-movements with relative money supplies and government deficits.
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Details
- Title
- Sunspots, currency substitution, and inflationary finance
- Creators
- Richard C. Barnett - University at Buffalo, State University of New YorkMun S. Ho - Harvard University
- Publication Details
- Journal of international economics, v 41(1), pp 73-93
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics); Bennett S. LeBow College of Business; Drexel University
- Web of Science ID
- WOS:A1996VZ63500004
- Scopus ID
- 2-s2.0-0008040017
- Other Identifier
- 991019551911204721
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InCites Highlights
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- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Economics