|
EconStor >
Institut für Weltwirtschaft (IfW), Kiel >
Economics: The Open-Access, Open-Assessment E-Journal - Journal Articles >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/18021
|
| | |
| Title: | | A Model of an Optimum Currency Area  |
| Authors: | | Ricci, Luca Antonio |
| Issue Date: | | 2008 |
| Citation: | | [Journal:] Economics: The Open-Access, Open-Assessment E-Journal [Volume:] 2 [Issue:] 2008-8 [Pages:] 1-31 [DOI/URN:] doi:10.5018/economics-ejournal.ja.2008-8 |
| Series/Report no.: | | economics - The Open-Access, Open-Assessment E-Journal 2008-8 |
| Abstract: | | This paper develops a model of the circumstances under which it is beneficial to participate in a currency area. The proposed two-country monetary model of trade with nominal rigidities encompasses the real and monetary arguments suggested by the optimum currency area literature: correlation of real and monetary shocks, international factor mobility, fiscal adjustment, openness, difference in national inflationary biases, and transactions costs. The effect of openness on the net benefits is ambiguous, contrary to the usual argument that more open economies are better candidates for a currency area. Also, prospective member countries do not necessarily agree on whether a given currency union should be created. |
| Subjects: | | Optimum currency areas cost- benefit analysis exchange rate regimes currency union monetary integration |
| JEL: | | H77 J61 F31 E42 E52 E61 F33 F02 F36 F4 |
| Persistent Identifier of the first edition: | | doi:10.5018/economics-ejournal.ja.2008-8 |
| URL of the first edition: | | http://www.economics-ejournal.org/economics/journalarticles/2008-8 |
| Creative Commons License: | |  |
| Document Type: | | Article |
| Appears in Collections: | | Economics: The Open-Access, Open-Assessment E-Journal - Journal Articles
|
| Files in This Item:
| |
|
| No. of Downloads:
| |
| last Month |
last 3 Month |
total |
|
|
|
|
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/18021
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|