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On the feasibility of a monetary union in the Southern Africa Development Community

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Abstract

This paper investigates the feasibility of a monetary union in Southern Africa Development Community (SADC) by looking at evidence of nominal exchange rate and inflation convergence. Using a methodology based on estimating time varying parameters, the evidence suggests non-convergence. The non-convergence of nominal exchange rate and consumer price inflation suggests that presently, the chances of SADC member countries satisfying some form of Maastricht-type criteria is quite low.

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File URL: http://arrow.hunter.cuny.edu/research/papers/HunterEconWP306.pdf
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Bibliographic Info

Paper provided by Hunter College: Department of Economics in its series Hunter College Department of Economics Working Papers with number 306.

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Length: 25 pages
Date of creation: 2003
Date of revision: 2003
Handle: RePEc:htr:hcecon:306

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Keywords: Inflation and Exchange Rate Convergence in SADC.;

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Cited by:
  1. Carlos Vieira & Isabel Vieira, 2012. "Monetary integration in Eastern and Southern Africa: choosing a currency peg for COMESA," CEFAGE-UE Working Papers 2012_03, University of Evora, CEFAGE-UE (Portugal).
  2. Fabrizio Carmignani, 2010. "Endogenous Optimal Currency Areas: the Case of the Central African Economic and Monetary Community," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 19(1), pages 25-51, January.

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