Record Details

Costs and Benefits of Monetary Union: A Pedagogical Note

African Journal of Economic Policy

View Archive Info
 
 
Field Value
 
Title Costs and Benefits of Monetary Union: A Pedagogical Note
 
Creator Oyejide, TA
 
Subject —
 
Description The primary motivation for establishing a monetary union (MU) derives from the desire to deepen an existing regional integration arrangement. This study examined the costs and benefits of MU. Generally, the benefits of MU accrue from macroeconomic efficiency gains such as reduced transactions costs; increased competition; reduced risks and uncertainty; and policy credibility enhancement. However, the costs relate largely to the macroeconomic management difficulties occasioned by loss of national monetary and exchange rate policy autonomy.Given a range of structural differences among countries contemplating the establishment of a MU, it is advisable for each to conduct a cost-benefit analysis or delay the decision to join until appropriate convergence criteria are met and an explicit cost-benefit sharing scheme designed. The benefits of monetary union are most effectively exploited when all the other key ingredients of economic integration have already been established and fully functioning.
 
Publisher Department of Economics, University of Ibadan
 
Contributor —
 
Date 2014-02-21
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.ajol.info/index.php/ajep/article/view/101352
 
Source African Journal of Economic Policy; Vol 19, No 1 (2012); 1-13
1116-4875
 
Language eng
 
Relation http://www.ajol.info/index.php/ajep/article/view/101352/90541
 
Rights Copyright for articles published in this journal is retained by the journal.