Should Finland and Sweden Form a Monetary Union?

Lars Jonung () and Fredrik Sjoholm ()

No 224, Working Paper Series in Economics and Finance from Stockholm School of Economics

Abstract: This paper surveys the future exchange rate policy of Finland and Sweden using the theory of optimal currency areas as a framework for the analysis. We examine which countries are most suitable to form a currency union with Finland and Sweden. The Finnish and Swedish economies display great similarities regarding industrial structure, business cycle patterns, migration and the design of economic policies. There are substantial differences between on the one hand Finland and Sweden, and on the other, many EU countries which are potential members of a future EMU. Our calculations give support for a Finnish-Swedish currency union and put a Finnish-Swedish membership of the EMU into question. Our results stress the importance of Finnish-Swedish co-operation in monetary matters. This could take many forms, of which a monetary union is one.

Keywords: Monetary integration; optimum currency areas; Finland; Sweden. (search for similar items in EconPapers)
JEL-codes: F33 (search for similar items in EconPapers)
Date: 1998-02-26
View list of references View citations in EconPapers

Forthcoming in The World Economy, 1999.

Downloads: (external link)
http://swopec.hhs.se/hastef/papers/hastef0224.pdf.zip (application/pdf)
http://swopec.hhs.se/hastef/papers/hastef0224.pdf (application/pdf)
http://swopec.hhs.se/hastef/papers/hastef0224.ps.zip (application/postscript)
http://swopec.hhs.se/hastef/papers/hastef0224.ps (application/postscript)

Related works:
Journal Article: Should Finland and Sweden Form a Monetary Union? (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:hhs:hastef:0224

Access Statistics for this paper

More papers in Working Paper Series in Economics and Finance from Stockholm School of Economics
Address: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
Contact information at EDIRC.
Series data maintained by Helena Lundin ().