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On the feasibility of a monetary union in the Southern Africa Development Community

  • Terence D. Agbeyegbe

    (Department of Economics, Hunter College and the Graduate Center, CUNY, USA)

This paper investigates the feasibility of a monetary union in Southern Africa Development Community (SADC) by looking at evidence of nominal exchange rate and inflation convergence. Using a methodology based on estimating time-varying parameters, the evidence suggests non-convergence. The non-convergence of nominal exchange rate and consumer price inflation suggests that presently the chances of SADC member countries satisfying some form of Maastricht-type criteria is quite low. Copyright © 2007 John Wiley & Sons, Ltd.

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Article provided by John Wiley & Sons, Ltd. in its journal International Journal of Finance & Economics.

Volume (Year): 13 (2008)
Issue (Month): 2 ()
Pages: 150-157

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Handle: RePEc:ijf:ijfiec:v:13:y:2008:i:2:p:150-157
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