Currency Unions in Prospect and Retrospect

João Santos Silva and Silvana Tenreyro

No 7824, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We critically review the recent literature on currency unions, and discuss the methodological challenges posed by the empirical assessment of their costs and benefits. In the process, we provide evidence on the economic effects of the euro. In particular, and in contrast with estimates of the trade effect of other currency unions, we find that the impact of the euro on trade has been close to zero. After reviewing the costs and benefits, we conclude with some open questions on normative and positive aspects of the theory of currency unions, emphasizing the need for a unified welfare-based framework to weigh their costs and gains.

Keywords: Currency union; Euro (search for similar items in EconPapers)
JEL-codes: F10 (search for similar items in EconPapers)
Date: 2010-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (125)

Downloads: (external link)
https://cepr.org/publications/DP7824 (application/pdf)

Related works:
Journal Article: Currency Unions in Prospect and Retrospect (2010)
Working Paper: Currency Unions in Prospect and Retrospect (2010)
Working Paper: Currency unions in prospect and retrospect (2010)
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:cpr:ceprdp:7824

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP7824

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().