Cover Departmental Papers
Toward a Monetary Union in the East African Community: Asymmetric Shocks, Exchange Rates, and Risk-Sharing Mechanisms
Author:
Mr. Paulo Drummond
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,
Mr. Ari Aisen
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Mr. Emre Alper
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Ms. Ejona Fuli
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, and
Mr. Sébastien Walker
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Series:
Departmental Papers
Volume/Issue:
Volume 2015: Issue 008
Language:
English
Publication Date:
20 Jul 2015
DOI:
https://doi.org/10.5089/9781513562179.087
ISBN:
9781513562179
ISSN:
2616-5333
Pages:
58
Keywords:
DPPP; DP; EAC country; interest rate; demand shock; monetary union; EAC economy; Exch. rate; partner state; Exchange rates; Monetary unions; Exchange rate arrangements; Currencies; Supply shocks; West Africa; East Africa; Sub-Saharan Africa
Legal-disclaimer:
The Departmental Paper Series presents research by IMF staff on issues of broad regional or cross-country interest. The views expressed in this paper are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper examines how susceptible East African Community (EAC) economies are to asymmetric shocks, assesses the value of the exchange rate as a shock absorber for these countries, and reviews adjustment mechanisms that would help ensure a successful experience under a common currency. The report draws on analysis of recent experiences and examines likely future changes in the EAC economies.
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Cover Departmental Papers
Departmental Papers
ISSN:
2616-5333
Publisher:
International Monetary Fund
Volume 2015: Issue 008