TY - BOOK ID - 84541509 TI - On the Pattern of Currency Blocs in Africa PY - 2005 SN - 146230544X 1451991401 1282110845 9786613803726 1451906005 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Currency question -- Africa. KW - Electronic books. -- local. KW - Monetary policy -- Africa. KW - Monetary unions -- Africa. KW - Exports and Imports KW - Inflation KW - Money and Monetary Policy KW - Financial Aspects of Economic Integration KW - Monetary Systems KW - Standards KW - Regimes KW - Government and the Monetary System KW - Payment Systems KW - Price Level KW - Deflation KW - Empirical Studies of Trade KW - International economics KW - Monetary economics KW - Macroeconomics KW - Monetary unions KW - Currencies KW - Trade balance KW - Economic unions KW - Money KW - Prices KW - Balance of trade KW - International economic integration KW - São Tomé and Príncipe, Democratic Republic of UR - https://www.unicat.be/uniCat?func=search&query=sysid:84541509 AB - This paper seeks to elucidate the debate over currency union in Africa. The paper examines whether empirical investigation points to the gradual emergence of currency blocs. Based on the historical data on inflation, trade, and the comovements of prices and outputs, I argue that the emergence of large-scale currency blocs in Africa will follow a gradual path and that this dynamic does not lead to the emergence of a single continental currency at this time. Rather, the pattern which emerges seems to suggest three blocs: one in West Africa, a second around South Africa, and a third in Central Africa. Although little evidence is found supporting the emergence of a single African currency at this time, the emergence of an African currency union is not necessarily precluded, since the ultimate decision to surrender a nation's monetary policy to a supranational institution is not made based solely on economic considerations. I then address the issue of a possible anchor for the union, were it to emerge and opt for an anchorage. I find- based on the trade criterion-that the euro seems to be a good choice. ER -