Abstract
The world consists of two monetary regions, say Europe and America. The exchange rate between Europe and America can be flexible or fixed. The monetary regions are completely specialized in production. Europe produces European goods, while America produces American goods. European goods and American goods are imperfect substitutes in consumption. The monetary regions are the same size and have the same behavioural functions. This assumption will be relaxed below, see Chapter 2.
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© 2002 Springer-Verlag Berlin Heidelberg
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Carlberg, M. (2002). The World of Two Monetary Regions. In: Inflation in a Monetary Union. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-24759-3_13
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DOI: https://doi.org/10.1007/978-3-540-24759-3_13
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-07769-2
Online ISBN: 978-3-540-24759-3
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