|
EconStor >
Rheinische Friedrich-Wilhelms-Universität Bonn >
Zentrum für Europäische Integrationsforschung (ZEI), Universität Bonn >
ZEI Working Papers, Zentrum für Europäische Integrationsforschung, Universität Bonn >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/39553
|
| | |
| Title: | | Stability of monetary unions: Lessons from the break-up of Czechoslovakia  |
| Authors: | | Fidrmuc, Jan Horvath, Julius Fidrmuc, Jarko |
| Issue Date: | | 1999 |
| Series/Report no.: | | ZEI working paper B 17-1999 |
| Abstract: | | In 1993, Czechoslovakia experienced a two-step break-up. On January 1, the country disintegrated as a political union, while preserving an economic and monetary union. Then, the Czech-Slovak monetary union collapsed on February 8. This paper analyzes the economic background of the two break-ups from the perspective of the optimum currency area literature. The main finding is that the Czech and Slovak economies were vulnerable to asymmetric economic shocks, such as those induced by the economic transition. In particular, the stability of Czechoslovakia was undermined by low correlation of permanent output shocks, low labor mobility and higher concentration of heavy and military industries in Slovakia. |
| Subjects: | | Optimum currency areas Disintegration Czechoslovakia |
| JEL: | | F33 F36 F42 |
| Document Type: | | Working Paper |
| Appears in Collections: | | ZEI Working Papers, Zentrum für Europäische Integrationsforschung, Universität Bonn
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/39553
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|