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Trade Blocs and Currency Blocs: A Package Deal?

Marion Kohler

Economics Working Papers from European University Institute

Abstract: The size of a bloc of countries practising some form of coordination of monetary policy is limited by the incentive to free ride that the formation of the bloc creates. However, when the threat of a trade war is introduced, this restriction on the size of the bloc is diminished.

Keywords: TRADE; MONETARY POLICY (search for similar items in EconPapers)
JEL-codes: E52 F42 (search for similar items in EconPapers)
Pages: 59 pages
Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:eui:euiwps:eco97/32

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