Citation

Discussion Paper Details

Please find the details for DP216 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: The EMS, The Dollar and the Yen

Author(s): Rudiger Dornbusch

Publication Date: December 1987

Keyword(s): Dual Exchange Rate System, European Monetary System, Exchange Rates, Fiscal Policy and Seigniorage

Programme Area(s): International Macroeconomics

Abstract: The paper investigates four challenges to exchange rate stability in the coming years and explores their implications for macroeconomic and exchange rate policy. The first section explores the importance of seigniorage in financing the government budget in Southern European countries. The second issue concerns real interest rates. The third obstacle to exchange rate stability is the continuing, sizeable overvaluation of the dollar. The paper also discusses excess capital mobility and the rationality of exchange markets, and endorses the Tobin proposal for market segmentation.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=216

Bibliographic Reference

Dornbusch, R. 1987. 'The EMS, The Dollar and the Yen'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=216