Sheen, Jeffrey; Kim, David - Econometric Society - 2004
In recent years, there has been much debate on whether or not countries in a region should adopt a common currency. One …-sharing mechanism in operation. Although adopting a common currency is expected to improve the degree of risk sharing and hence welfare … following issues: (i) the role of fiscal policy in risk-sharing, and (ii) the suitability of a common currency area between …