Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper develops a method of testing levels of economic integration based upon consumption smoothing, and tests it using data on trade balances across Canadian provinces. The results indicate the provinces are highly integrated within Canada, but integration between Canada and the rest of the world is partial. Provincial trade balances respond only about half as much to events in the rest of the world as they do to events within Canada. In short, national borders appear to matter for intertemporal trade.

Exports and Imports --- Macroeconomics --- Economic Integration --- Financial Aspects of Economic Integration --- General Equilibrium and Welfare Economic Analysis of Regional Economies --- Aggregate Factor Income Distribution --- Macroeconomics: Consumption --- Saving --- Wealth --- Empirical Studies of Trade --- International economics --- Income --- Trade balance --- Consumption --- Economic integration --- Government consumption --- National accounts --- International trade --- Economics --- Balance of trade --- International economic integration --- Canada

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper discusses how the size of the monetary union in Europe can influence the choice of the monetary framework. The main conjecture is that the European Central Bank ought to target inflation if monetary union is confined to a “core” group of countries. However, the decision on whether to target inflation or monetary aggregates is not an unambiguous one if monetary union is EU-wide; the choice of the framework will depend on the type of shocks that are likely to prevail. The arguments motivating these conjectures essentially concern the trade-offs between the viability and credibility of different monetary frameworks.

Exports and Imports --- Money and Monetary Policy --- Monetary Policy --- Central Banks and Their Policies --- Financial Aspects of Economic Integration --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Demand for Money --- Monetary economics --- International economics --- Inflation targeting --- Monetary unions --- Monetary aggregates --- Demand for money --- Monetary aggregate target --- Monetary policy --- Economic integration --- Money --- Money supply --- United Kingdom

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper discusses the timing of monetary integration and supporting economic policies during a rapid and largely uncontrolled process of Korean unification. The paper concludes that the transitory use of a separate currency in each region and supporting economic policies would help limit the initial costs of unification although the extent of the eventual cost reduction would depend critically on the success of ensuing economic reforms in the North during the transition. Maintaining the competitiveness of the northern economy would need to be a primary policy objective in the case of an early introduction of a common currency.

Exports and Imports --- Foreign Exchange --- Labor --- Macroeconomics --- Money and Monetary Policy --- Monetary Systems --- Standards --- Regimes --- Government and the Monetary System --- Payment Systems --- Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General --- Financial Aspects of Economic Integration --- Socialist Systems and Transitional Economies: General --- Wages, Compensation, and Labor Costs: General --- Aggregate Factor Income Distribution --- Monetary economics --- Labour --- income economics --- International economics --- Currency --- Foreign exchange --- Money --- Economic integration --- National accounts --- Wages --- Monetary unions --- Income

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

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 suggested by the optimum currency area literature: correlation of real shocks, international factor mobility, fiscal adjustment, openness, difference in national inflationary biases, correlation of monetary shocks, and benefits of a single currency. The effect of openness on the net benefits is ambiguous, contrary to the usual argument that more open economies are better candidates for a currency area. Countries do not necessarily agree on whether a given currency union should be created.

Exports and Imports --- Foreign Exchange --- Inflation --- Labor --- Money and Monetary Policy --- Monetary Systems --- Standards --- Regimes --- Government and the Monetary System --- Payment Systems --- Monetary Policy --- International Economic Order and Integration --- International Monetary Arrangements and Institutions --- Financial Aspects of Economic Integration --- Intergovernmental Relations --- Federalism --- Secession --- Geographic Labor Mobility --- Immigrant Workers --- Price Level --- Deflation --- International economics --- Monetary economics --- Currency --- Foreign exchange --- Macroeconomics --- Labour --- income economics --- Monetary unions --- Currencies --- Exchange rate flexibility --- Labor mobility --- Economic integration --- Money --- Prices --- United States

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Whether the prospective shift of the peg of the CFA franc to the euro would constitute an exchange rate arrangement with EMU countries would depend critically on the interpretation of the free convertibility of the CFA franc guaranteed by France. Nonetheless, this shift is likely to leave the CFA franc arrangements and operating features of the zone essentially unchanged. The current parity of the CFA franc could be considered in line with fundamentals. The potential economic consequences for the CFA franc countries could be positive over the long term, but there is a risk of a weakening of external competitiveness.

Banks and Banking --- Exports and Imports --- Foreign Exchange --- Money and Monetary Policy --- Economic Integration --- International Monetary Arrangements and Institutions --- Foreign Aid --- Financial Aspects of Economic Integration --- Monetary Systems --- Standards --- Regimes --- Government and the Monetary System --- Payment Systems --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- International Lending and Debt Problems --- Currency --- Foreign exchange --- Monetary economics --- International economics --- Banking --- Currencies --- Monetary unions --- Real effective exchange rates --- Exchange rates --- Money --- Economic integration --- External debt --- Banks and banking --- Debts, External --- France