Evaluating the EMS and Emu Using Stochastic Simulations: Some Issues

Masson, Paul R.; Symansky, Steven

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Evaluating the EMS and Emu Using Stochastic Simulations: Some Issues

IMF Working Paper No. 93/28

40 Pages Posted: 15 Feb 2006

See all articles by Paul R. Masson

Paul R. Masson

International Monetary Fund (IMF) - Research Department; The Brookings Institution

Steven Symansky

International Monetary Fund (IMF) - Fiscal Affairs Department

Date Written: March 1993

Abstract

Evaluations of European monetary integration using model simulations have given conflicting results, and the paper attempts to elucidate the reasons for the differences. Several features stand out: how to model realignments; how monetary policy is set for individual countries or for Europe; and how large are risk premium shocks in exchange markets. We quantify the effects of different assumptions relating to these features using MULTIMOD.

JEL Classification: F31, F47

Suggested Citation: Suggested Citation

Masson, Paul R. and Symansky, Steven, Evaluating the EMS and Emu Using Stochastic Simulations: Some Issues (March 1993). IMF Working Paper No. 93/28, Available at SSRN: https://ssrn.com/abstract=883464