Common Markets and Economic Unions

Ali M. El-Agraa
Additional contact information
Ali M. El-Agraa: Leeds University

Chapter 4 in The Theory and Measurement of International Economic Integration, 1989, pp 65-88 from Palgrave Macmillan

Abstract: Abstract The analysis of customs unions (CUs) needs drastic extension when applied to common markets (CMs) and economic unions (EUs). Firstly, the introduction of free factor mobility may enhance efficiency through a more rational reallocation of resources but may also result in depressed areas, therefore creating or aggravating regional problems and imbalances — see Mayes (1983a) and Robson (1985). Secondly, fiscal harmonisation may also improve efficiency by eliminating non-tariff trade barriers (NTBs) and distortions and by equalising their effective protective rates. Thirdly, the coordination of monetary and fiscal policies which is implied by monetary integration may ease unnecessarily severe imbalances hence resulting in the promotion of the right atmosphere for stability in the economies of the member nations.

Keywords: Exchange Rate; Monetary Policy; Fiscal Policy; Monetary Union; Phillips Curve (search for similar items in EconPapers)
Date: 1989
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:palchp:978-1-349-10203-7_4

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349102037

DOI: 10.1007/978-1-349-10203-7_4

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().