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The CIS: does the regional hegemon facilitate monetary integration?

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  • Mayes, David G.
  • Korhonen, Vesa

Abstract

We consider the likely economic impact and prospects for monetary integration among Belarus, Kazakhstan, the Russian Federation and Ukraine as part of the Single Economic Space they have agreed to set up. A monetary union among these countries poses three interesting issues for the structure and process of integration: they have already been members of a wider currency union that collapsed, so it is necessary to handle the problems of history; secondly the union would be of very unequal size with the Russian Federation outweighing the others taken together, so we must consider how the national interests would be balanced; lastly natural resources, particularly oil and gas pose problems for dependence and for the determination of the external exchange rate.

Suggested Citation

  • Mayes, David G. & Korhonen, Vesa, 2007. "The CIS: does the regional hegemon facilitate monetary integration?," BOFIT Discussion Papers 16/2007, Bank of Finland Institute for Emerging Economies (BOFIT).
    • Handle: RePEc:zbw:bofitp:bdp2007_016
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    References listed on IDEAS

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    1. Mr. Vassili Prokopenko & Mr. Etibar Jafarov & Ms. Anne Marie Gulde, 2004. "A Common Currency for Belarus and Russia?," IMF Working Papers 2004/228, International Monetary Fund.
    2. Kristina Kittelmann & Marcel Tirpak & Rainer Schweickert & Lúcio Vinhas De Souza, 2006. "From Transition Crises to Macroeconomic Stability? Lessons from a Crises Early Warning System for Eastern European and CIS Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 48(3), pages 410-434, September.
    3. Mongelli, Francesco Paolo & De Grauwe, Paul, 2005. "Endogeneities of optimum currency areas: what brings countries sharing a single currency closer together?," Working Paper Series 468, European Central Bank.
    4. Vladimir Chaplygin & Andrew Hughes Hallett & Christian Richter, 2006. "Monetary integration in the ex‐Soviet Union: A ‘union of four’?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 14(1), pages 47-68, March.
    5. Mayes, David G. & Suvanto, Antti, 2002. "Beyond the Fringe: Finland and the Choice of Currency," Journal of Public Policy, Cambridge University Press, vol. 22(2), pages 161-182, September.
    6. Schnabl, Gunther, 2005. "International capital markets and exchange rate stabilization in the CIS," Journal of Comparative Economics, Elsevier, vol. 33(3), pages 425-440, September.
    7. repec:zbw:bofrdp:2006_018 is not listed on IDEAS
    8. Crowley, Patrick M. & Maraun, Douglas & Mayes, David, 2006. "How hard is the euro area core? An evaluation of growth cycles using wavelet analysis," Bank of Finland Research Discussion Papers 18/2006, Bank of Finland.
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    Cited by:

    1. Libman, Alexander, 2009. "Russian federalism and post-Soviet integration: Divergence of development paths," MPRA Paper 12944, University Library of Munich, Germany.
    2. Libman, Alexander, 2008. "Federalism and regionalism in transition countries: A survey," MPRA Paper 29196, University Library of Munich, Germany.

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    More about this item

    Keywords

    Monetary union; CIS; economic integration;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

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