Toward a theory of international currencya step further

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?

Ficha do documento

Tipo

Estudo

Ano

1995

Instituição

Escola de Pós-Graduação em Economia da FGV

Fonte

Repositório da FGV

Idioma

Inglês

Acesso

Não informado

Identificador

oai:repositorio.fgv.br:10438/12380

Temas

Economia

Palavras-chave

EconomiaMoedaPolítica monetária