Advanced Search
MyIDEAS: Login to save this paper or follow this series

A One World Currency? A Factor-OCA Approach to the Analysis of Monetary Integration

Contents:

Author Info

  • Andrew Powell and Federico Sturzenegger

Abstract

Most models of monetary union (MU) are two country, here we develop a simple n-country Factor-OCA approach and consider the costs and benefits of joining an MU, the costs and benefits for third parties (both MU members and non members) and hence we can consider the optimal composition of an MU for the different parties. We show the model in practice with various simulations and two empircial applications based on EMU and Nafta. While recent commentators have called for a one-world curency, we find monetary integration has costs for some countries and benefits for others, perhaps explaining why this remains an issue of considerable interest and debate.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.utdt.edu/download.php?fname=_115331298206593800.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Universidad Torcuato Di Tella in its series Business School Working Papers with number oneworld.

as in new window
Length: 35 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:udt:wpbsdt:oneworld

Contact details of provider:
Postal: Miñones 2177 - (1428) Buenos Aires
Web page: http://www.utdt.edu/listado_contenidos.php?id_item_menu=4994
More information through EDIRC

Related research

Keywords:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Tamim Bayoumi, 1994. "A Formal Model of Optimum Currency Areas," IMF Staff Papers, Palgrave Macmillan, vol. 41(4), pages 537-554, December.
  2. Poole, William, 1970. "Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 84(2), pages 197-216, May.
  3. Bayoumi, Tamim & Eichengreen, Barry, 1994. "Monetary and exchange rate arrangements for NAFTA," Journal of Development Economics, Elsevier, vol. 43(1), pages 125-165, February.
  4. Bean, Charles R, 1992. "Economic and Monetary Union in Europe," CEPR Discussion Papers, C.E.P.R. Discussion Papers 722, C.E.P.R. Discussion Papers.
  5. Neumeyer, Pablo Andres, 1998. "Currencies and the Allocation of Risk: The Welfare Effects of a Monetary Union," American Economic Review, American Economic Association, vol. 88(1), pages 246-59, March.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:udt:wpbsdt:oneworld. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nicolás Del Ponte).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.