IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Toward Maghreb monetary unification:what does the theory and history tell us?

Listed author(s):
  • Belhadj, Aam
  • bangake, Chrysost
  • Jedlane, NABIL

Since the beginning of the decade, numerous economic and monetary unification projects have aroused a lot of interest. The reinforcement of economic and monetary integration, especially in Europe, has set a trend for the creation of a monetary union in many others regions of the world. Since then, the debate has moved towards the study of the parameters that justify the creation of a single currency. However, another current of thought emphasized the fragility of the traditional theory and considered the criteria as incomplete, since this theory insists solely on a few elements concerning the adjustment process under various exchange regimes (Bogdan 2004). Also, many monetary unions have existed and lasted without meeting this theory’s criteria. Other economists recommend studying the history of these monetary unions so as to define the necessary conditions for the success of a monetary integration (Sharp 2005, Jonung 2002). Within Maghreb, the completion of the regional integration process, initiated in 1989 by the creation of the Arab Maghreb Union (AMU) and the establishment of the Maghreb monetary union would have a positive impact on economic growth, good governance and political stability. In this paper, we showed that the Maghreb Countries can not constitute a monetary block that satisfies the criteria of optimality. Moreover, the study of historical experiences also allowed us to verify that the MCs have to strengthen their political coordination and improve their budgetary and financial situations to establish a lasting monetary union. Finally, with the aim of a Maghreb monetary unification, we conclude with the idea that these countries have to make more efforts to gather economico-institutional conditions essential to the institution of one of the two preliminary proposed monetary systems, namely a pure float with inflation targeting or a currency board.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
File Function: original version
Download Restriction: no

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 40375.

in new window

Date of creation: 10 Sep 2007
Handle: RePEc:pra:mprapa:40375
Contact details of provider: Postal:
Ludwigstraße 33, D-80539 Munich, Germany

Phone: +49-(0)89-2180-2459
Fax: +49-(0)89-2180-992459
Web page:

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

in new window

  1. Chinn, Menzie D. & Ito, Hiro, 2006. "What matters for financial development? Capital controls, institutions, and interactions," Journal of Development Economics, Elsevier, vol. 81(1), pages 163-192, October.
  2. Luca Antonio Ricci, 1997. "Un modèle simple de zone monétaire optimale," Économie et Prévision, Programme National Persée, vol. 128(2), pages 1-19.
  3. Xavier Debrun & Paul Masson & Catherine Pattillo, 2003. "West African Currency Unions: Rationale and Sustainability," CESifo Economic Studies, CESifo, vol. 49(3), pages 381-413.
  4. Nabil Jedlane, 2006. "Unification monétaire et Caisses d'émission au Maghreb," Post-Print halshs-00311911, HAL.
  5. George S. Tavlas, 2009. "Optimum-Currency-Area Paradoxes," Review of International Economics, Wiley Blackwell, vol. 17(3), pages 536-551, August.
  6. Gerald P. Dwyer & James R. Lothian, 2002. "International money and common currencies in historical perspective," FRB Atlanta Working Paper 2002-7, Federal Reserve Bank of Atlanta.
  7. Michael D. Bordo & Lars Jonung, 1999. "The Future of EMU: What Does the History of Monetary Unions Tell Us?," NBER Working Papers 7365, National Bureau of Economic Research, Inc.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:40375. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.