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Currency Unions in Prospect and Retrospect

Santos Silva, Joao M C and Tenreyro, Silvana (2010) Currency Unions in Prospect and Retrospect. Working Paper. C.E.P.R. Discussion Papers.

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We critically review the recent literature on currency unions, and discuss the methodological challenges posed by the empirical assessment of their costs and benefits. In the process, we provide evidence on the economic effects of the euro. In particular, and in contrast with estimates of the trade effect of other currency unions, we find that the impact of the euro on trade has been close to zero. After reviewing the costs and benefits, we conclude with some open questions on normative and positive aspects of the theory of currency unions, emphasizing the need for a unified welfare-based framework to weigh their costs and gains.

Item Type: Monograph (Working Paper)
Uncontrolled Keywords: currency union; euro
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Jim Jamieson
Date Deposited: 07 Aug 2012 09:49
Last Modified: 07 Aug 2012 09:49

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