Beauty Queens and Wallflowers: Currency Unions in the Middle East and Central Asia
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Summary:
Against the background of the theory of optimum currency areas, the paper analyzes possible sequences for establishing a currency union (CU) in the Middle East and Central Asia region. Between the corner solutions of independent currencies for all countries in the region and a CU comprising all countries, a large number of combinations of member countries in the CU is possible. The analysis aims to determine the composition of potential CUs as a function of the country initiating the CU, an exogenously determined number of currencies in the region, and the weight attached to the particular selection criteria. Within this framework, the study seeks to establish whether some countries are consistently selected at early stages of the process, while others join only at later stages.
Series:
Working Paper No. 2006/226
Subject:
Currencies Economic integration Exchange rates Exports Foreign exchange Inflation International trade Monetary unions Money Prices
English
Publication Date:
October 1, 2006
ISBN/ISSN:
9781451864861/1018-5941
Stock No:
WPIEA2006226
Pages:
26
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