One Money or Many? On Analyzing the Prospects for Monetary Unification in Various Parts of the World

The literature on optimal currency areas identifies the symmetry of disturbances and the speed with which economies adjust as key criteria affecting the decision of whether to form a monetary union. This paper uses structural vector autoregression techniques to examine these issues for three regions: Western Europe, the Americas, and East Asia. The results suggest three country groupings that best satisfy these criteria: Northern Europe (Germany, France, the Netherlands, Belgium, Denmark, Austria, and possibly Switzerland); Northeast Asia (Japan, Taiwan, and Korea); and Southeast Asia (Hong Kong, Singapore, Malaysia, Indonesia, and possibly Thailand).


Issue Date:
1993-11
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/233213
Total Pages:
51
JEL Codes:
F33; F36
Series Statement:
Working Paper
C93-030




 Record created 2017-04-01, last modified 2017-04-26

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