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The Economic Case for Monetary Union in the European Union

Buiter, Willem H. - 1997

Differential requirements for seigniorage provide a weak case for retaining monetary independence. As regards adjustment to asymmetric shocks, nominal exchange rate flexibility is at best a limited blessing and at worst a limited curse. Absence of significant fiscal redistribution mechanisms...

Persistent link: https://www.econbiz.de/10014089435

Can South Asia Adopt a Common Currency?

Saxena, Sweta C. - 2004

The paper examines if the seven South Asian countries satisfy the criteria to form an optimal currency area. The empirical part of the paper reveals some positive attributes (such as the existence of positive shocks for major economies like India, Pakistan and Sri Lanka). The paper provides...

Persistent link: https://www.econbiz.de/10014068847

Optimum Currency Areas, Structural Changes and the Endogeneity of the OCA Criteria : Evidence from Six New EU Member States

Sideris, Dimitrios - 2022

readiness for euro adoption. The second aim is to examine whether the introduction of the euro in 1999 and the decision of the … countries to seek to join the euro area created any forces fostering their convergence, evidence which would be in line with the … theory on the endogeneity of the OCA criteria. Our findings indicate that the introduction of the euro did promote …

Persistent link: https://www.econbiz.de/10014030376

The Stability of Monetary Unions : Lessons from the Break-Up of Czechoslovakia

Fidrmuc, Jan; Horvath, Julius; Fidrmuc, Jarko - 2000

In 1993, Czechoslovakia experienced a two-step break-up. On January 1, the country disintegrated as a political union, while preserving an economic and monetary union. Then, the Czech-Slovak monetary union collapsed on February 8. This paper analyzes the economic background of the two break-ups...

Persistent link: https://www.econbiz.de/10014166329

Optimal Currency Areas and Customs Unions : Are They Connected?

Kohler, Marion - 1999

This paper examines the link between currency areas and customs unions. The size of a bloc of countries practicing some form of co-ordination of monetary policy is limited by the incentive to free-ride that formation of the bloc creates. However, when the threat of a trade war is introduced, the...

Persistent link: https://www.econbiz.de/10014206429

The Impact of a Common Currency on East Asian Production Networks and China’s Exports Behavior

Rahman, Mizanur - Volkswirtschaftliche Fakultät, … - 2008

Vertical fragmentation of product value chain across borders is the driving force of growing economic interdependency in East Asia. A common currency, not flexible exchange rates between national currencies, would reduce flexibility in relative prices within East Asia. Its impact would be far...

Persistent link: https://www.econbiz.de/10005621422

Stability of monetary unions : lessons from the break-up of Czechoslovakia

Fidrmuc, Jan - 1999

Persistent link: https://www.econbiz.de/10001490101

Stability of monetary unions : lessons from the break-up of Czechoslovakia

Fidrmuc, Jan; Horváth, Július; Fidrmuc, Jarko - 1999

Persistent link: https://www.econbiz.de/10010518146

Costs and Benefits of Dollarization: Evidence from North, Central, and South America

Karras, Georgios - In: Journal of Economic Integration 17 (2002), pp. 502-516

This paper examines the macroeconomic costs and benefits of dollarization. Economic theory suggests that the main benefit is enhanced price stability, while the main cost is higher business-cycle volatility if the dollarizing country’s output is not sufficiently correlated with that of the...

Persistent link: https://www.econbiz.de/10010840784

EMU Enlargement, Stabilisation Costs and Insurance Mechanisms

Afonso, António; Furceri, Davide - 2008

's economy and that of the euro area as a whole, and the ability of insurance mechanisms and fiscal policies to smooth income … not yet well synchronized with the euro area's business cycle, and risk-sharing mechanisms do not provide enough insurance …

Persistent link: https://www.econbiz.de/10014049118