I Introduction
Author: Mr. Mark P. Taylor1, Mr. Peter Isard, Mr. Morris Goldstein2, and Mr. Paul R Masson
  • 1 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund
  • | 2 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund
Language:
English
Keywords:
OP; monetary union desirable; monetary union; country; exchange rate commitment; policy union; policy coordination; exchange rate union; Monetary unions; Exchange rates; Currencies; Real exchange rates; Europe; Middle East; Western Hemisphere; Asia and Pacific; Global; price flexibility; exchange stability; currencies of member country; International monetary system

Abstract

Monetary, or exchange rate unions can be defined as areas within which exchange rates bear a permanently fixed relationship to each other. Without capital controls, only one monetary policy can exist in such areas.1 Such areas of exchange stability might also involve the replacement of the currencies of member countries by a common currency, that is, the formation of a common currency area or currency union. But because the implications for monetary policy independence are the same for monetary and currency unions, the two will be treated together in this paper.2

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Cover Policy Issues in the Evolving International Monetary System
Policy Issues in the Evolving International Monetary System
Author: Mr. Mark P. Taylor, Mr. Peter Isard, Mr. Morris Goldstein, and Mr. Paul R Masson
ISBN:
9781557752345
ISSN:
0251-6365
Publication Date:
15 Jun 1992
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781557752345.084
Pages:
81