South Asian Monetary Integration in Light of the Optimum Currency Area Criterion of Patterns of Shocksâ€

Nephil Maskay ()

South Asia Economic Journal, 2001, vol. 2, issue 2, 203-219

Abstract: This article discusses South Asian monetary integration in light of the Optimum Currency Area criterion of patterns of shocks. Patterns of shocks indicate the cost resulting from adjustment to balance of payments disequilibrium due to pursuing a fixed or a flexible exchange rate strategy. Empirical results suggest that SAARC is not an optimum currency area. In other words, there will be significant costs of immediately implementing the extreme form of monetary integration, that is, monetary union such as that in Europe. Thus, SAARC should not pursue a single currency at this time.

Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/139156140100200202 (text/html)

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:sae:soueco:v:2:y:2001:i:2:p:203-219

DOI: 10.1177/139156140100200202

Access Statistics for this article

More articles in South Asia Economic Journal from Institute of Policy Studies of Sri Lanka
Bibliographic data for series maintained by SAGE Publications ().