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Cape Verde: The Case For Euroisation

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  • Joao Loureiro
  • Manuel M.f. Martins
  • Ana Paula Ribeiro

Abstract

After a decade of a successful peg to the euro, the authorities of Cape Verde are considering the official euroisation of the country. For an ex ante economic evaluation of such a move, this paper assesses whether Cape Verde fulfills key economic criteria devised by the optimum currency areas literature, using as benchmark the comparable records of the 27 European Union (EU) countries. The answer is positive. Overall, we find that Cape Verde is not less suited for euroisation than some of the current euro area members and most of the remaining members of the EU.

Suggested Citation

  • Joao Loureiro & Manuel M.f. Martins & Ana Paula Ribeiro, 2010. "Cape Verde: The Case For Euroisation," South African Journal of Economics, Economic Society of South Africa, vol. 78(3), pages 248-268, September.
    • Handle: RePEc:bla:sajeco:v:78:y:2010:i:3:p:248-268
    DOI: 10.1111/j.1813-6982.2010.01247.x
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    Cited by:

    1. Ribeiro, Ana Paula & Carvalho, Vitor & Sanches, Hélder, 2021. "Debt dynamics and fiscal policy stance in Cape Verde: Is there evidence of pro-cyclical behavior?," MPRA Paper 111305, University Library of Munich, Germany.
    2. João Estevao, 2020. "Monetary transitions in Cabo Verde: from the escudo zone to the exchange agreement with Portugal," CEsA Working Papers 179, CEsA - Centre for African and Development Studies.

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    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles

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