| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5062124 | Economics Letters | 2007 | 5 Pages |
Abstract
In a currency area, when a country faces a positive shock inflation goes up, real interest rate decreases and competitiveness deteriorates. We show that the stability of equilibrium depends on the rationality of expectations and budget balance of the public sector.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Alberto Alonso, Luis C. Corchón, Vanesa Guzmán,