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A Currency Union Between Australia and New Zealand?

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Author Info

  • Peter J. Lloyd
  • Lei Lei Song

Abstract

This paper examines the case for a monetary union, involving a common currency and a common central bank, between Australia and New Zealand. It gives a statistical profile of features of the economies that are relevant to the economic debate. The analysis follows a neo-Mundellian framework that separates the macroeconomic effects from the microeconomic effects. It examines the effects on individual goods, financial and foreign exchange markets, and discusses public choice issues. In the absence of research on the magnitude of the microeconomic gains and on the effects of a monetary union on the Australian economy, we do not advocate a monetary union at the present time.

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File URL: http://www.cepii.fr/IE/rev107/ei107g.htm
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Bibliographic Info

Article provided by CEPII research center in its journal Economie Internationale.

Volume (Year): (2006)
Issue (Month): 107 ()
Pages: 149-172

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Handle: RePEc:cii:cepiei:2006-3tg

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Related research

Keywords: Monetary union; neo-mundellian framework; independent monetary policies; exchange rates; monetary block; monetary integration; monetary policy;

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Blog mentions

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  1. Uniuni, reuniuni si nunti monetare
    by hymerion in dan popa on 2011-04-09 03:56:15

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  1. Talk:Australia–New Zealand relations in Wikipedia (English)

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