Summary Applying hard and soft clustering algorithms to a set of variables suggested by the convergence criteria and the theory of optimal currency areas, this paper examines the suitability of countries in the west African region to form the proposed monetary unions, the West African Monetary...

We argue that evidence on whether floating exchange rates facilitate external adjustment is contradictory because existing regime classifications do not adequately capture exchange rate flexibility relevant to external adjustment. Using a trade-weighted bilateral exchange rate volatility...