Is Mercosur an optimum currency area? An assessment using generalized purchasing power parity

Sergio Da Silva, Leandro Stocco () and J. Anchieta Neves ()
Additional contact information
Leandro Stocco: Department of Economics, University of Sao Paulo
J. Anchieta Neves: Petrobras

Economics Bulletin, 2008, vol. 6, issue 29, 1-13

Abstract: We consider the cointegration approach of generalized purchasing power parity to show that a necessary condition for Mercosur to be an optimum currency area is met. Yet there are still large cross-country differences as to cast doubt on the success of either monetary union or official dollarization. The PPP puzzle is also found to occur in Mercosur.

JEL-codes: F3 (search for similar items in EconPapers)
Date: 2008-07-23
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.accessecon.com/pubs/EB/2008/Volume6/EB-08F30044A.pdf (application/pdf)

Related works:
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: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-08f30044

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().