Regional Initiative in the Gulf Arab States: The Search for a Common Currency
While many commentators have been openly critical of China's currency policy on the basis of an undervalued renminbi, despite a similar surge in GCC's (Gulf Cooperation Council) balance of payment surpluses in the first decade of this century, the vast majority of the commentators have maintained a stony silence on the undervalued Gulf currencies. This underscores the geopolitics of currencies as a form of asymmetric warfare and the consequences of dollar, euro or renminbi diplomacy. This paper makes two main additions to the literature on Gulf monetary union. First, it emphasizes that the creation of a fiscal union is necessary for the Gulf monetary union to succeed. Second, it proposes some alternatives to pegging to the dollar, which would allow the GCC to absorb large swings in global commodity prices (oil, food) in the short to medium run. The proposed exchange rate regimes are not conditional on the formation of the Gulf monetary union, and can be implemented individually or collectively.
|Date of creation:||23 Apr 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Basher, Syed Abul & Elsamadisy, Elsayed Mousa, 2010.
"Country Heterogeneity and Long-Run Determinants of Inflation in the Gulf Arab States,"
27348, University Library of Munich, Germany.
- Syed Abul Basher & Elsayed Mousa Elsamadisy, 2012. "Country heterogeneity and long-run determinants of inflation in the Gulf Arab states," OPEC Energy Review, Organization of the Petroleum Exporting Countries, vol. 36(2), pages 170-203, 06.
- Mohsin S. Khan, 2010.
"The GCC Monetary Union: Choice of Exchange Rate Regime,"
in: Currency Union and Exchange Rate Issues, chapter 5
Edward Elgar Publishing.
- Mohsin S. Khan, 2009. "The GCC Monetary Union: Choice of Exchange Rate Regime," Working Paper Series WP09-1, Peterson Institute for International Economics.
- Michael D. Bordo & Lars Jonung & Agnieszka Markiewicz, 2013.
"A Fiscal Union for the Euro: Some Lessons from History ,"
CESifo Economic Studies,
CESifo, vol. 59(3), pages 449-488, September.
- Michael D. Bordo & Agnieszka Markiewicz & Lars Jonung, 2011. "A Fiscal Union for the Euro: Some Lessons from History," NBER Working Papers 17380, National Bureau of Economic Research, Inc.
- Elsamadisy, Elsayed Mousa & Alkhater, Khalid Rashid & Basher, Syed Abul, 2013.
"Pre- versus Post-Crisis Central Banking in Qatar,"
45310, University Library of Munich, Germany.
- Frankel, Jeffrey A., 2005. "Peg the export price index: A proposed monetary regime for small countries," Journal of Policy Modeling, Elsevier, vol. 27(4), pages 495-508, June.
- Serhan Cevik, 2011. "Policy Coordination in Fiscal Federalism; Drawing Lessons From the Dubai Debt Crisis," IMF Working Papers 11/147, International Monetary Fund.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:46486. 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 references are entirely missing, you can add them using this form.