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A Currency Union Between Australia and New Zealand?


  • Peter J. Lloyd
  • Lei Lei Song


This paper examines the case for a monetary union, involving a common currency and a common central bank, between Australia and New Zealand. It gives a statistical profile of features of the economies that are relevant to the economic debate. The analysis follows a neo-Mundellian framework that separates the macroeconomic effects from the microeconomic effects. It examines the effects on individual goods, financial and foreign exchange markets, and discusses public choice issues. In the absence of research on the magnitude of the microeconomic gains and on the effects of a monetary union on the Australian economy, we do not advocate a monetary union at the present time.

Suggested Citation

  • Peter J. Lloyd & Lei Lei Song, 2006. "A Currency Union Between Australia and New Zealand?," Economie Internationale, CEPII research center, issue 107, pages 149-172.
  • Handle: RePEc:cii:cepiei:2006-3tg

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    Blog mentions

    As found by, the blog aggregator for Economics research:
    1. Uniuni, reuniuni si nunti monetare
      by hymerion in dan popa on 2011-04-09 08:56:15

    More about this item


    Monetary union; neo-mundellian framework; independent monetary policies; exchange rates; monetary block; monetary integration; monetary policy;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration


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    1. Talk:Australia–New Zealand relations in Wikipedia English ne '')


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