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What Do we Now Know About Currency Unions? Author info | Abstract | Publisher info | Download info | Related research | Statistics Michael Artis
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The paper presents the text of an inaugural lecture given at the Bank of England in December 2005 in memory of John Flemming. It provides a personal view of the lessons that can be drawn about currency unions from the experience of the European Monetary Union. It argues that business cycle concurrence is a less important criterion for participation than was once believed. Most important is the integration of financial markets and the shrinking of financial premia that individual countries face: this opens the way for countries to share risk, thereby enhancing welfare.
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Article provided by CEPII research center in its journal Economie Internationale .
Volume (Year): (2006)
Issue (Month): 3Q ()
Pages: 9-28
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Handle: RePEc:cii:cepiei:2006-3taContact details of provider: Postal: 9 rue Georges Pitard, 75740 Paris Cedex 15 Phone: 33 01 53 68 55 00 Fax: 33 01 53 68 55 01 Web page: http://www.cepii.fr More information through EDIRC
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Keywords: Currency union European Monetary Union financial integration business cycle convergence trade creation monetary block financial globalization EMU Other versions of this item:
Find related papers by JEL classification: F15 - International Economics - - Trade - - - Economic Integration F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
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Michael Artis & Michael Ehrmann, 2000.
"The Exchange Rate -a Shock-Absorber or Source of Shocks? A Study of Four Open Economies ,"
EUI-RSCAS Working Papers
38, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
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Artis, Michael J & Ehrmann, Michael, 2000.
"The Exchange Rate - A Shock-Absorber or Source of Shocks? A Study of Four Open Economies ,"
CEPR Discussion Papers
2550, C.E.P.R. Discussion Papers.
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Other versions:
Rose, Andrew, 1999.
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"The Endogeneity of the Optimum Currency Area Criteria ,"
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Other versions:
Frankel, Jeffrey A & Rose, Andrew K, 1996.
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CEPR Discussion Papers
1473, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Frankel, Jeffrey A & Rose, Andrew K, 1998.
"The Endogeneity of the Optimum Currency Area Criteria ,"
Economic Journal ,
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[Downloadable!] (restricted)
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