01793cas a2200253 a 4500 AALejournalIMF007470 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451923087 1018-5941 BD-DhAAL BD-DhAAL Kocherlakota, Narayana. Why Do Different Countries Use Different Currencies? / Narayana Kocherlakota, Thomas Krueger. Washington, D.C. : International Monetary Fund, 1998. 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 During long periods of history, countries have pegged their currencies to an international standard (such as gold or the U.S. dollar), severely restricting their ability to create money and affect output, prices, or government revenue. Nevertheless, countries generally have maintained their own currencies. The paper presents a model where agents have heterogeneous preferences-that are private information-over goods of different national origin. In this environment, it may be optimal for countries to have different currencies; we also identify conditions where separate national currencies do not expand the set of optimal allocations. Implications for a currency union in Europe are discussed. Mode of access: Internet Krueger, Thomas. IMF Working Papers; Working Paper ; No. 1998/017 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/017/001.1998.issue-017-en.xml IMF e-Library