Toward a theory of international currency : a step further
Carregando...
Arquivos
Data
1995-09-06
Autores
Orientador(res)
Métricas
Título da Revista
ISSN da Revista
Título de Volume
Resumo
We generalize the two-country, two-currency model of Matsuyama, Kiyotaki and Matsui to resolve two 'shortcomings' in their approach. First, we endogenize prices and excb.ange rates. Second, we introduce monetary policy. We then use the model to address the following new questions: How does the fact that a currency circulates intemationally affect its purcb.asing power? Where does an intemational currency purcb.ase more? What are the effects on seignorage and welfare when a currency becomes intemational? How is policy affected by concems of currency substitution? How are national monetary policies connected, and what is the scope for international cooperation?