From 1980s to today social welfare idea was changed and a neoliberal economic thought takes its place. In 1989, Berlin Wall and then Soviet Union was collapsed which is also the reason for free market system and privatization in transition economies of Eastern Europe. Developing countries in...

This paper examines the circumstances under which it is beneficial for small countries in a currency union to peg their currency to a large one (euro zone for example). For these purposes, we provide a three-country theoretical model extending the two-country model by Ricci (2008). The...

This paper investigates empirically the economic feasibility of monetary integration in East Asia. A structural VAR model is employed to decompose real output, real exchange rate and price level into a lagged polynomial of supply, demand and monetary shocks. The shocks are identified through the...

What lessons can be drawn from the European experience with regional integration that started in the 1950s, for regional integration in Latin America, which is still in its early stages? We present here a new indicator of institutional integration and study how it developed vis-à-vis diverse...