Series: IMF Working Papers
Author(s): Luca Ricci
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 June 1997
Keywords: Optimum currency areas, cost-benefit analysis, exchange rate regimes, currency union, monetary integration, inflation, exchange rate, monetary shocks, exchange rates, currency areas
This paper investigates the circumstances under which it is beneficial to participate in a currency area. A two-country monetary model of trade with nominal rigidities encompasses the real and monetary arguments su...