Toward Maghreb monetary unification:what does the theory and history tell us?
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.
|Date of creation:||10 Sep 2007|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
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.:
- 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.
- Chinn,M.D. & Ito,H., 2005. "What matters for financial development? : capital controls, institutions, and interactions," Working papers 4, Wisconsin Madison - Social Systems.
- Chinn, Menzie David & Ito, Hiro, 2005. "What Matters for Financial Development? Capital Controls, Institutions, and Interactions," Santa Cruz Department of Economics, Working Paper Series qt5pv1j341, Department of Economics, UC Santa Cruz.
- Chinn, Menzie David & Ito, Hiro, 2005. "What Matters for Financial Development? Capital Controls, Institutions, and Interactions," Santa Cruz Center for International Economics, Working Paper Series qt5pv1j341, Center for International Economics, UC Santa Cruz.
- Menzie D. Chinn & Hiro Ito, 2005. "What Matters for Financial Development? Capital Controls, Institutions, and Interactions," NBER Working Papers 11370, National Bureau of Economic Research, Inc.
- Luca Antonio Ricci, 1997. "Un modèle simple de zone monétaire optimale," Économie et Prévision, Programme National Persée, vol. 128(2), pages 1-19.
- Nabil Jedlane, 2006. "Unification monétaire et Caisses d'émission au Maghreb," Post-Print halshs-00311911, HAL.
- Nabil JEDLANE, 2007. "Unification monétaire et Caisse d'émission au Maghreb," LEO Working Papers / DR LEO 1731, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
- Nabil Jedlane, 2007. "Unification monétaire et Caisses d'émission au Maghreb," Post-Print halshs-00268225, HAL.
- Nabil Jedlane, 2007. "Unification monétaire et caisses d'émission au Maghreb," Post-Print halshs-00311773, HAL.
- 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.
- Gerald P. Dwyer & James R. Lothian, 2003. "International Money and Common Currencies in Historical Perspective," CEIS Research Paper 9, Tor Vergata University, CEIS.
- Gerald P. Dwyer Jr. & James R. Lothian, 2003. "International Money and Common Currencies in Historical Perspective," International Finance 0311005, EconWPA.
- George S. Tavlas, 2009. "Optimum-Currency-Area Paradoxes," Review of International Economics, Wiley Blackwell, vol. 17(3), pages 536-551, 08.
- 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)