Skip to main content
Article thumbnail
Location of Repository

Do Currency Unions Deliver More Economic Integration than Fixed Exchange Rates? Evidence from the CFA and the ECCU

By David Fielding and Kalvinder K. Shields

Abstract

In this paper we develop a model to identify determinants of macroeconomic integration in the African CFA Franc Zone and in Dollar-pegging Caribbean countries (including members of the East Caribbean Currency Union). These two groups of countries each comprise states using several different local currencies: on the one hand the BCEAO-CFA Franc and the BEAC-CFA Franc (both pegged to the Euro), on the other the ECCU Dollar and other national Dollar-pegged currencies. The purpose of the analysis is to distinguish the effect of monetary union on macroeconomic integration from the effect of pegging to a common OECD currency

Topics: Currency Unions, International Integration
Publisher: Dept. of Economics, University of Leicester.
Year: 2003
OAI identifier: oai:lra.le.ac.uk:2381/4418

Suggested articles


To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.