Toward a Monetary Union in the East African Community: Asymmetric Shocks, Exchange Rates, and Risk-Sharing Mechanisms
Departmental Papers, July 20, 2015
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- Toward a Monetary Union in the East African Community: Asymmetric Shocks, Exchange Rates, and Risk-Sharing Mechanisms
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Bibliographic details
- Authors: Paulo Drummond, Ari Aisen, Emre Alper, Ejona Fuli, Sébastien Walker
- Published: July 20, 2015
- Series: Departmental Papers
- DOI: https://doi.org/10.5089/9781513562179.087
Overview / Purpose
- Examines how susceptible East African Community (EAC) economies are to asymmetric shocks.
- Assesses the value of the exchange rate as a shock absorber for these countries.
- Reviews adjustment mechanisms that would help ensure a successful experience under a common currency.
- Draws on analysis of recent experiences and examines likely future changes in the EAC economies.
Authors and Publication
- By Paulo Drummond, Ari Aisen, Emre Alper, Ejona Fuli, Sébastien Walker
- July 20, 2015
- Departmental Paper No. 2015/008
- Pages: 58
- Volume: 2015
- Issue: 008
- DOI: https://doi.org/10.5089/9781513562179.087
- Stock No: TMUEACEA
- ISBN: 9781513562179
- ISSN: 2616-5333
Major Themes and Analytical Focus
- Susceptibility of EAC economies to asymmetric shocks (supply shocks, demand shocks).
- Role of the exchange rate as a shock absorber in EAC countries.
- Review of adjustment mechanisms relevant for a monetary union.
- Consideration of recent country experiences and likely future changes in EAC economies.
Subject Areas and Keywords
- Subject: Currencies, Economic integration, Economic theory, Exchange rate arrangements, Exchange rates, Foreign exchange, Monetary unions, Money, Supply shocks
- Keywords: Currencies, demand shock, DP, DPPP, EAC country, EAC economy, East Africa, Exch. rate, Exchange rate arrangements, Exchange rates, interest rate, monetary union, Monetary unions, partner state, Sub-Saharan Africa, Supply shocks, West Africa
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- Web landing page summary with link to full paper on IMF eLibrary.
- Download PDF and more formats available on IMF eLibrary (as noted in source).
Departmental Papers — Toward a Monetary Union in the East African Community: Asymmetric Shocks, Exchange Rates, and Risk-Sharing Mechanisms, Paulo Drummond et al., July 20, 2015.