A One World Currency? A Factor-OCA Approach to the Analysis of Monetary Integration
AbstractMost 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 InfoIf 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.
Bibliographic InfoPaper provided by Universidad Torcuato Di Tella in its series Business School Working Papers with number oneworld.
Length: 35 pages
Date of creation: 2006
Date of revision:
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
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.:
- William Poole, 1970.
"Optimal choice of monetary policy instruments in a simple stochastic macro model,"
57, Board of Governors of the Federal Reserve System (U.S.).
- Poole, William, 1970. "Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model," The Quarterly Journal of Economics, MIT Press, vol. 84(2), pages 197-216, May.
- William Poole, 1969. "Optimal choice of monetary policy instruments in a simple stochastic macro model," Special Studies Papers 2, Board of Governors of the Federal Reserve System (U.S.).
- Barry J. Eichengreen & Tamim Bayoumi, 1993.
"Monetary and Exchange Rate Arrangements for NAFTA,"
IMF Working Papers
93/20, International Monetary Fund.
- Bean, Charles R, 1992.
"Economic and Monetary Union in Europe,"
CEPR Discussion Papers
722, C.E.P.R. Discussion Papers.
- 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.
- Neumeyer, P.A., 1995. "Currencies and the Allocation of Risk: The Welfare Effect of a Monetary Union," DELTA Working Papers 95-27, DELTA (Ecole normale supérieure).
- Bayoumi, Tamim, 1994.
"A Formal Model of Optimum Currency Areas,"
CEPR Discussion Papers
968, C.E.P.R. Discussion Papers.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nicolás Del Ponte).
If references are entirely missing, you can add them using this form.