Original Sin - Analysing Its Mechanics and a proposed Remedy in a Simple Macroeconomic Model
Axel Lindner
IWH Discussion Papers,
No. 11,
2006
Abstract
This paper analyses the problem of “original sin“ (the fact that the currency of an emerging market economy usually cannot be used to borrow abroad) in a simple thirdgeneration model of currency crises. The approach differs from alternative frameworks by explicitly modeling the price setting behavior of firms if prices are sticky and the future exchange rate is uncertain. Monetary policy optimally trades off effects on price competitiveness and on debt burdens of firms. It is shown that the proposal by Eichengreen and Hausmann of creating an artificial basket currency as denominator of debt is attractive as a provision against contagion.
Read article
The MCI as a Monetary Policy Guide in a Small, Open Emerging Market Economy
Philippe Burger, Tobias Knedlik
South African Journal of Economics,
No. 72,
2004
Abstract
Read article
The MCI as a monetary policy guide in a small, open and emerging market economy
Tobias Knedlik, Philippe Burger
Economic Working Paper Series,
2003
Abstract
Read article
Are the Central and Eastern European Transition Countries still vullnerable to an Financial Crisis? Results from the Signals Approach
Axel Brüggemann, Thomas Linne
IWH Discussion Papers,
No. 157,
2002
Abstract
The aim of the paper is to analyse the vulnerability of the Central and Eastern European accession countries to the EU as well as that of Turkey and Russia to a financial crisis. Our methodology is an extension of the signals approach. We develop a composite indicator to measure the evolution of the risk potential in each country. Our findings show that crises in Central and Eastern Europe are caused by much the usual suspects as in others emerging markets. In particular an overvalued exchange rate, weak exports and dwindling currency reserves have good predictive power for assessing crisis vulnerabilities.
Read article
Self-employment – Ideal or emergency solution?
Cornelia Lang
Wirtschaft im Wandel,
No. 9,
1997
Abstract
Im Beitrag wird der Wunsch junger Menschen nach beruflicher Selbständigkeit näher betrachtet. Hinter diesem Wunsch können ganz unterschiedliche Motive stehen und zwischen Wunsch nach Selbständigkeit und der Wirklichkeit – gemessen am Anteil junger Erwachsener, die diesen Weg tatsächlich einschlagen – gibt es beachtliche Diskrepanzen.
Read article
