The Credibility of the United Kingdom's Commitment to the Erm: Intentions Versus Actions
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Beteilige Person: Masson, Paul R. (VerfasserIn)
Format: Elektronisch E-Book
Sprache:Englisch
Veröffentlicht: Washington, D.C International Monetary Fund 1994
Schriftenreihe:IMF Working Papers Working Paper No. 94/147
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http://elibrary.imf.org/view/IMF001/06861-9781451856682/06861-9781451856682/06861-9781451856682.xml
http://elibrary.imf.org/view/IMF001/06861-9781451856682/06861-9781451856682/06861-9781451856682.xml
http://elibrary.imf.org/view/IMF001/06861-9781451856682/06861-9781451856682/06861-9781451856682.xml
http://elibrary.imf.org/view/IMF001/06861-9781451856682/06861-9781451856682/06861-9781451856682.xml
http://elibrary.imf.org/view/IMF001/06861-9781451856682/06861-9781451856682/06861-9781451856682.xml
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http://elibrary.imf.org/view/IMF001/06861-9781451856682/06861-9781451856682/06861-9781451856682.xml
http://elibrary.imf.org/view/IMF001/06861-9781451856682/06861-9781451856682/06861-9781451856682.xml
http://elibrary.imf.org/view/IMF001/06861-9781451856682/06861-9781451856682/06861-9781451856682.xml
http://elibrary.imf.org/view/IMF001/06861-9781451856682/06861-9781451856682/06861-9781451856682.xml
http://elibrary.imf.org/view/IMF001/06861-9781451856682/06861-9781451856682/06861-9781451856682.xml
http://elibrary.imf.org/view/IMF001/06861-9781451856682/06861-9781451856682/06861-9781451856682.xml
http://elibrary.imf.org/view/IMF001/06861-9781451856682/06861-9781451856682/06861-9781451856682.xml
http://elibrary.imf.org/view/IMF001/06861-9781451856682/06861-9781451856682/06861-9781451856682.xml
http://elibrary.imf.org/view/IMF001/06861-9781451856682/06861-9781451856682/06861-9781451856682.xml
Abstract:The paper presents estimates of a model of the credibility of the U.K. commitment to its central parity against the deutsche mark during the period of U.K. ERM membership (1990-92). The measure of credibility used is the long-term interest differential with Germany. Credibility is decomposed into two aspects: an assessment of whether the government was truly committed to the ERM, and the probability that even a committed government would be able to continue to bear the unemployment costs. Doubts about the first aspect-which could lead to a self-fulfilling crisis-are shown to have declined steadily during the period of ERM membership, while the second aspect is estimated to have become increasingly important, due to rising unemployment
Umfang:1 Online-Ressource (32 p)
ISBN:1451856687
9781451856682