What Do we Now Know About Currency Unions?

Michael Artis

Economie Internationale, 2006, issue 107, 9-28

Abstract: The paper presents the text of an inaugural lecture given at the Bank of England in December 2005 in memory of John Flemming. It provides a personal view of the lessons that can be drawn about currency unions from the experience of the European Monetary Union. It argues that business cycle concurrence is a less important criterion for participation than was once believed. Most important is the integration of financial markets and the shrinking of financial premia that individual countries face: this opens the way for countries to share risk, thereby enhancing welfare.

Keywords: Currency union; European Monetary Union; financial integration; business cycle convergence; trade creation; monetary block; financial globalization; EMU (search for similar items in EconPapers)
JEL-codes: F15 F36 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:cii:cepiei:2006-3ta

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