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Establishing a Monetary Union

Author

Listed:
  • Cooper, R.
  • Kempf, H.

Abstract

In contrast to Mundell's inquiry on the optimality of currency areas, this paper aims to understand under what circumstances will a Pareto-dominant monetary union be established. Using a multi-country overlapping generations model, we highlight gains from monetary union arising from reduced transactions costs and lower inflation.

Suggested Citation

  • Cooper, R. & Kempf, H., 2000. "Establishing a Monetary Union," Papiers d'Economie Mathématique et Applications 2000.28, Université Panthéon-Sorbonne (Paris 1).
    • Handle: RePEc:fth:pariem:2000.28
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    Cited by:

    1. Russell W. Cooper & Hubert Kempf, 2001. "Dollarization and the conquest of hyperinflation in divided societies," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 25(Sum), pages 3-12.
    2. Holod, Dmytro & Reed, Robert III, 2004. "Regional spillovers, economic growth, and the effects of economic integration," Economics Letters, Elsevier, vol. 85(1), pages 35-42, October.

    More about this item

    Keywords

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    JEL classification:

    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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