Leaving EMU: a real options perspective

C-Tier
Journal: Applied Economics
Year: 2005
Volume: 37
Issue: 13
Pages: 1449-1453

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The real option implicit in a country's decision of whether to leave an existing monetary union when there is uncertainty over the future benefits of this move is examined. The theoretical model used is calibrated for the current Euro-12 area by proxying policymakers' inflation preferences with unemployment rates and debt-to-GDP ratios. A robust group of countries is observed that would choose to remain within EMU consisting of Belgium, Finland, Greece and Italy; France and Spain loosely also belong to this core. Only Luxembourg would robustly want to leave EMU; Ireland and The Netherlands, however, complement that core closely.

Technical Details

RePEc Handle
repec:taf:applec:v:37:y:2005:i:13:p:1449-1453
Journal Field
General
Author Count
1
Added to Database
2026-01-29