Rudiger Dornbusch

"Italians dream that the ECB will make their life easier than the Bundesbank does now... The new central bank is certain to establish itself at the outset as a direct continuation of the German central…"

"The most serious criticism of EMU is that by abandoning exchange rate adjustments it transfers to the labor market the task of adjusting for competitiveness and relative prices... losses in output and…"

"Once Italy is in, with an appreciated currency, the country will soon be back on the ropes, just as in 1992, when the currency came under attack."

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought."

"If there was ever a bad idea, EMU it is."

"The paper develops a simple macroeconomic framework for the study of exchange rate movements. The purpose is to develop a theory that is suggestive of the observed large fluctuations in exchange rates…"

"The most likely scenario is that EMU will occur but will neither end Europe’s currency troubles nor solve its prosperity problems."

"In figure 3 we show the money and domestic asset market equilibrium schedules for given stocks of each of the assets. Along MM the domestic money market is in equilibrium. Higher interest rates reduce…"