Note: The web version of this article, available at http://www.imf.org/research, contains an appendix listing the countries involved in each of the existing and proposed currency unions mentioned above.
Robert Mundell, currently University Professor at Columbia University and the 1999 Nobel Laureate in Economics, was a staff member of the IMF between August 1961 and September 1963. “A Theory of Optimum Currency Areas” was published in the American Economic Review, Vol. 51, No. 4, pp. 657–65 (September 1961).
Tamim Bayoumi, “A Formal Model of Optimum Currency Areas,” IMF Staff Papers, Vol. 41, pp. 537–54, 1994.
Luca A. Ricci, “A Model of an Optimum Currency Area,” IMF Working Paper 97/76, 1997 (also published as “Un modèle simple de zone monétaire optimale,” Economie et Prévision, Vol. 128, 1997).
Xavier Debrun, “Fiscal Rules in a Monetary Union: A Short-Run Analysis,” Open Economies Review, Vol. 11, pp. 323–58, 2000.
Tamim Bayoumi and Paul Masson, “Liability-Creating Versus Non- Liability-Creating Fiscal Stabilisation Policies: Ricardian Equivalence, Fiscal Stabilisation and EMU,” Economic Journal, Vol. 108, 1998.
Xavier Debrun, “Bargaining over EMU vs. EMS: Why Might the ECB be the Twin Sister of the Bundesbank?” Economic Journal, forthcoming.
Tamim Bayoumi and Barry Eichengreen, 1998, “Exchange Rate Volatility and Intervention: Implications of the Theory of Optimum Currency Areas,” Journal of International Economics, 1998, Vol. 45, No. 2, pp. 191–210.
Luca Ricci and Peter Isard, “EMU, Adjustment, and Exchange Rate Variability,” IMF Working Paper 98/50, 1998 (also forthcoming in European Economic Review).
Tamim Bayoumi and Barry Eichengreen, “Shocking Aspects of European Monetary Integration,” in Adjustment and Growth in the European Monetary Union, ed. by Francisco Torres and Francesco Giavazzi (Cambridge: Cambridge University Press, 1993).
Tamim Bayoumi and Eswar Prasad, “Currency Unions, Economic Fluctuations, and Adjustment: Some New Empirical Evidence,” IMF Staff Papers, Vol. 44, pp. 36–57 (March 1997).
Tamim Bayoumi and Barry Eichengreen, “Ever Closer to Heaven? An Optimum-Currency-Area Index for European Countries,” European Economic Review Papers and Proceedings, 1997, Vol. 41, pp. 761–70.
George Kopits, “Implications of EMU for Exchange Rate Policy in Central and Eastern Europe,” IMF Working Paper 99/9, 1999; and Paul Masson, “Monetary and Exchange Rate Policy of Transition Economies of Central and Eastern Europe After the Launch of EMU,” IMF Policy Discussion Paper 99/5, 1999.
Tamim Bayoumi and Barry Eichengreen, “One Money or Many? Analyzing the Prospects for Monetary Unification in Various Parts of the World,” Princeton Studies in International Finance, No. 76, 1994; and Tamim Bayoumi and Barry Eichengreen, “Monetary and Exchange Rate Arrangements for NAFTA,” Journal of Development Economics, 1994. On Mercosur, see also Michael Mussa, Paul Masson, Alexander Swoboda, Esteban Jadresic, Paolo Mauro, and Andrew Berg, Exchange Rate Regimes in an Increasingly Integrated World Economy, IMF Occasional Paper No. 193,2000.
Tamim Bayoumi, Barry Eichengreen, and Paolo Mauro, “On Regional Monetary Arrangements for ASEAN,” Journal of the Japanese and International Economies, Vol. 14, No. 2, pp. 121–48, 2000; and Tamim Bayoumi and Paolo Mauro, “The Suitability of ASEAN for a Regional Currency Arrangement,” IMF Working Paper 99/162, 1999 (also published in The World Economy, Vol. 24, No. 7, pp. 933-54, 2001).
Esteban Jadresic, “On a Common Currency for the GCC Countries,” IMF Policy Discussion Paper, forthcoming.
Frits van Beek, Jose Roberto Rosales, Mayra Zermeno, Ruby Randall, and Jorge Shepherd, The Eastern Caribbean Currency Union: Institutions, Performance, and Policy Issues, IMF Occasional Paper No. 195, 2000.
Alexander W. Hoffmaister, Jorge E. Roldos, and Peter Wickham, “Macroeconomic Fluctuations in Sub-Saharan Africa,” IMF Staff Papers, Vol. 45, No. 1, 1998. For a review of institutional features, recent developments, and policy issues in the CFA zone, see also Michael T. Hadjimichael and Michel Galy, “The CFA Franc Zone and the EMU,” IMF Working Paper 97/156, 1997; and Ernesto Hernandez-Cata and others, The West African Economic and Monetary Union: Recent Developments and Policy Issues, IMF Occasional Paper No. 170, 1998.
Paul Masson and Catherine Pattillo, “Monetary Union in West Africa:An Agency of Restraint for Fiscal Policies?” IMF Working Paper 01/34, 2001; and Paul Masson and Catherine Pattillo, Monetary Union in West Africa (ECOWAS), IMF Occasional Paper No. 204, 2001. Appendix II in the latter paper also provides a concise and useful survey of existing and failed currency unions across the world.
Dominique M. Guillaume and David Stasavage, “Improving Policy Credibility: Is There a Case for African Monetary Unions?” World Development, vol. 28, No. 8, pp. 1391–07 (August 2000).
Tamim Bayoumi and Jonathan Ostry, “Macroeconomic Shocks and Trade Flows Within Sub-Saharan Africa: Implications for Optimum Currency Arrangements,” Journal of African Economies, 1997, Vol. 6. pp. 412–44.