Event in Focus

Seminario

EconNet: Heterogeneidad financiera y unión monetaria

Fecha: 30 nov 2017

Horario: 12:00

Ubicación: 1300 New York Ave., NW, Washington DC - Sala SE-1035, Estados Unidos de América

  

Evento abierto al público


Título: Heterogeneidad financiera y unión monetaria

Orador: Egon Zakrajsek (Federal Reserve Board, DC)

Resumen (en iglés): We analyze the economic consequences of forming a monetary union among countries with varying degrees of financial distortions, which interact with the firms’ pricing decisions because of customer-market considerations. In response to a financial shock, firms in financially weak countries (the periphery) maintain cashflows by raising prices--in both domestic and export markets--while firms in financially strong countries (the core) lower prices, undercutting their financially constrained competitors to gain market share. When the two regions are experiencing different shocks, common monetary policy results in a substantially higher macroeconomic volatility in the periphery, compared with a floating exchange rate regime; this translates into a welfare loss for the union as a whole, with the loss borne entirely by the periphery. While complete risk sharing can improve the periphery’s welfare, such an arrangement involves large state-contingent transfers of wealth. By helping firms from the core internalize the pecuniary externality engendered by the interaction of financial frictions and customer markets, a unilateral fiscal devaluation by the periphery can improve the union's overall welfare.


Para mayor información: research@iadb.org


Econnet es una serie de seminarios organizados por el Departamento de Investigación y Sector de aprendizaje y conocimiento del BID. Los seminarios consisten en una serie de almuerzos donde un académico invitado presenta sus últimos hallazgos en algún tema de desarrollo relevante a América Latina y el Caribe. EconNet se lleva a cabo todos los jueves al medio día.

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