01561cas a2200241 a 4500 AALejournalIMF004386 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451846171 1018-5941 BD-DhAAL BD-DhAAL Bayoumi, Tamim. A Formal Model of Optimum Currency Areas / Tamim Bayoumi. Washington, D.C. : International Monetary Fund, 1994. 1 online resource (22 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1994/042 Full text available on IMF http://elibrary.imf.org/view/journals/001/1994/042/001.1994.issue-042-en.xml IMF e-Library