Is Latin America an Optimal Currency Area? Evidence from a Structural Vector Auto-regression analysis
Pasquale Foresti
MPRA Paper from University Library of Munich, Germany
Abstract:
This paper evaluates the advisability of a monetary union in Latin America applying the theory of optimum currency areas (OCA). The analysis, based on the traditional OCA criteria, suggests that there is no evidence for any monetary integration in Latin America, even at a sub-regional level. Latin American countries have evidenced a low degree of trade integration and asymmetric co-movements among their shocks. Moreover, important differences in the speed of adjustment and size of shocks are found. Higher policy coordination seems to be necessary before starting any economic integration process in Latin America.
JEL-codes: C32 F0 (search for similar items in EconPapers)
Date: 2007-08, Revised 2008-04
New Economics Papers: this item is included in nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/2961/1/MPRA_paper_2961.pdf original version (application/pdf)
Related works:
Journal Article: Is Latin America an Optimum Currency Area? Evidence from a Structural Vector Autoregression Analysis (2011) 
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:pra:mprapa:2961
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().