A Formal Model of Optimum Currency Areas /

A model of optimum currency areas is presented using a general equilibrium model with regionally differentiated goods. The choice of a currency union depends upon the size of the underlying disturbances, the correlation between these disturbances, the costs of transactions across currencies, factor...

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Detalles Bibliográficos
Autor principal: Bayoumi, Tamim
Formato: Revista
Lenguaje:English
Publicado: Washington, D.C. : International Monetary Fund, 1994.
Colección:IMF Working Papers; Working Paper ; No. 1994/042
Acceso en línea:Full text available on IMF
Descripción
Sumario:A model of optimum currency areas is presented using a general equilibrium model with regionally differentiated goods. The choice of a currency union depends upon the size of the underlying disturbances, the correlation between these disturbances, the costs of transactions across currencies, factor mobility across regions, and the interrelationships between demand for different goods. It is found that, while a currency union can raise the welfare of the regions within the union, it unambiguously lowers welfare for those outside the union.
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Descripción Física:1 online resource (22 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acceso:Electronic access restricted to authorized BRAC University faculty, staff and students