A Theory of Optimum Currency Areas: Revisited

Author/Editor:

Robert P Flood ; Joshua Aizenman

Publication Date:

May 1, 1992

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Starting with Friedman and Mundell the academic literature has conducted a high level debate concerning the design of cross-country monetary arrangements. That debate has become very complex and the data requirements necessary for appropriate application of the principles developed are far beyond the means of the very nations for which the principles might be valuable. In this paper we return to the simplicity of the early arguments and formalize them in a way that may be helpful for currency area decisions where little is known about economic structure.

Series:

Working Paper No. 1992/039

Subject:

Conventional peg Employment Exchange rate arrangements Exchange rate flexibility Foreign exchange Labor

English

Publication Date:

May 1, 1992

ISBN/ISSN:

9781451845747/1018-5941

Stock No:

WPIEA0391992

Pages:

24

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