ABSTRACT. Gruen et al.'s results highlight the stringent informational requirements inherent in an activist policy approach to handling asset-price bubbles. Europe's economy is highly developed and diversified, and its financial markets are deep; the debates provoked by the EMS crisis parallel those stimulated by its emerging-market successors (Eichengreen). Wennerlind claims that Hume used different analytical models when considering exogenous and endogenous money.



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