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Why a Monetary Union?

In: Monetary Unions

Author

Listed:
  • Hubert Kempf

    (École Normale Supérieure Paris-Saclay
    NRU Higher School of Economics)

Abstract

This chapter focuses on the properties of a monetary union, the desirability of its membership both from the point of view of an economy considering entering a monetary union and from the point of view of its actual member countries (or regions). It explores the various theories offered by economists to answer these questions. Starting with a discussion of the optimal currency area theory developed by Mundell, it then addresses the issue of credibility of a monetary union. The extend of a monetary union, that is its membership, is discussed as well as the most significant changes induced by the creation of a monetary union.

Suggested Citation

  • Hubert Kempf, 2022. "Why a Monetary Union?," Springer Texts in Business and Economics, in: Monetary Unions, chapter 2, pages 39-75, Springer.
  • Handle: RePEc:spr:sptchp:978-3-030-93232-9_2
    DOI: 10.1007/978-3-030-93232-9_2
    as

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