Sobre la contribución del déficit público a la estabilidad de una moneda
Year of publication: 2002
Issue: 3
Pages: 1-29
Type: Working paper
Abstract
The main aim of this paper is try to show the relevance of budget deficits on monetary instability, just in the moment which the commitment of PEC could suppose a problem for some of the European economies. Our framework is the period of belonging to EMS of the Spanish peseta. Using a Markov switching Model firstly, we identify different speculative periods and second, letting transition probabilities vary with the budget deficit, we show the relevance of that variable to the instability of a currency.