Welfare Effects of Monetary Integration: the Common Monetary Area and Beyond

WPIEA2012136 Image
Price:  $18.00

Author/Editor: Tamon Asonuma, Xavier Debrun, Paul R. Masson
Release Date: © May, 2012
ISBN : 978-1-47550-389-0
Stock #: WPIEA2012136
English
Stock Status: On back-order

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Description

This paper proposes a quantitative assessment of the welfare effects arising from the Common Monetary Area (CMA) and an array of broader grouping among Southern African Development Community (SADC) countries. Model simulations suggest that (i) participating in the CMA benefits all members; (ii) joining the CMA individually is beneficial for all SADC members except Angola, Mauritius and Tanzania; (iii) creating a symmetric CMA-wide monetary union with a regional central bank carries some costs in terms of foregone anti-inflationary credibility; and (iv) SADC-wide symmetric monetary union continues to be beneficial for all except Mauritius, although the gains for existing CMA members are likely to be limited.

Taxonomy

Banks and banking , Central banks , Economic cooperation , Financial institutions and markets , Monetary unions




More publications in this series: Working Papers


More publications by: Tamon Asonuma ; Xavier Debrun ; Paul R. Masson