Consequences of changing a currency on an econmy

Problems with modeling
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Rodrigue
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Consequences of changing a currency on an econmy

Post by Rodrigue » 1 month ago

Hello everyone

I wish to study the economic consequences to a country that wants to abandon a currency for a new one through a CGE model. The issue is that where can be the best way possible to start simulation?

Let me take an example to explain clearly my preocupation.

Suppose that a given country of euro zone like France wants to create its on currency against the actual one that's "Euro" without resigning from the zone.
Now we know that this action must have an impacts on its economy.

First is it possible to capture these impacts by using a cge model ?

When it is possible how can we handle the situation ?

I'm not actually convinced from the approach i got.

Thank you in advance for your contributions

Rodrigue

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