## Welfare Effects of Monetary Integration: The Common Monetary Area and Beyond

_IMF Working Papers, May 1, 2012_

## Source details

**Canonical URL:** [Welfare Effects of Monetary Integration: The Common Monetary Area and Beyond](https://www.imf.org/en/publications/wp/issues/2016/12/31/welfare-effects-of-monetary-integration-the-common-monetary-area-and-beyond-25945)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/31/welfare-effects-of-monetary-integration-the-common-monetary-area-and-beyond-25945/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/31/welfare-effects-of-monetary-integration-the-common-monetary-area-and-beyond-25945/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/31/welfare-effects-of-monetary-integration-the-common-monetary-area-and-beyond-25945/bundle-manifest.json)

## Bibliographic details
- Authors: Tamon Asonuma, Xavier Debrun, Paul R Masson
- Published: May 1, 2012
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475503890.001

---

### Summary of objective and method
- Proposes a quantitative assessment of the welfare effects arising from the Common Monetary Area (CMA) and an array of broader groupings among Southern African Development Community (SADC) countries.
- Uses model simulations to evaluate welfare implications for different membership and union configurations.

### Main findings (from model simulations)
- Participating in the CMA benefits all members.
- Joining the CMA individually is beneficial for all SADC members except Angola, Mauritius and Tanzania.
- Creating a symmetric CMA-wide monetary union with a regional central bank carries some costs in terms of foregone anti-inflationary credibility.
- 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.

### Subject areas and keywords
- Subject: Banking, Currencies, Inflation, Monetary base, Monetary unions
- Keywords: CMA agreement, CMA arrangement, CMA country, CMA member, CMA monetary policy, monetary union, terms of trade, WP

---

## Content in this bundle

- **_wp12136**
  - [_wp12136 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2012/_wp12136.pdf.md){rel="alternate" type="text/markdown"}
  - [_wp12136 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2012/_wp12136.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/welfare-effects-of-monetary-integration-the-common-monetary-area-and-beyond-25945_