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O euro e a UME: lições para o Mercosul

Philip Arestis, Malcolm Sawyer (), Luiz Fernando de Paula () and Fernando Ferrari Filho ()

Revista Economia e Sociedade, 2002, vol. 20, 24

Abstract: Academic debate in South America favours a Mercosur monetary union based on the euro and the European Monetary Union (EMU), and inspired by the theory of Optimal Currency Area (OCA). This paper aims to discuss whether the adoption of a single currency in the EMU mould of monetary union, is appropriate and feasible for the Mercosur. Three lessons are derived for Mercosur from the euro and the EMU experience: the adoption of the EMU model of monetary union would imply deflationary policies; there is the dilemma of sequencing between political union and economic integration; and the necessity of accounting seriously the concerns of the OCA literature. The paper also shows that there is no evidence that macroeconomic convergence is evident in Mercosur, since the area only minimally achieved some basic criteria defined by the OCA literature.

Keywords: European Monetary Union; Mercosur; Optimum Currency Area. (search for similar items in EconPapers)
JEL-codes: F02 F33 (search for similar items in EconPapers)
Date: 2002
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