The Common Monetary Area in Southern Africa: Shocks, Adjustment, and Policy Challenges

Optimum Currency Area (OCA) theory proves inadequate in the analysis of the new regional monetary integration schemes that have sprung up among developing and emerging market economies since the 1990s.Building on the concept of 'original sin' developed by Eichengreen et al.we argue that a different conceptual framework is needed as these regional monetary South-South integration (SSI) schemes differ fundamentally from North-South arrangements because they involve none of the international reserve currencies. Insights from the cases of monetary south-south cooperation in Southern Africa, East Asia and Latin America suggest that SSI can have beneficial effects on macroeconomic stability. This paper sketches a first set of hypotheses on the necessary conditions for these stability gains to materialise. JEL classification system: F33, F36, O11

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What Drives China's Growing Role in Africa?

Wang

2007

SSRN Journal

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The Common Monetary Area in Southern Africa: Shocks, Adjustment, and Policy Challenges

Cited by 5 publications

References 5 publications

Do African Monetary Arrangements Make Sense? Evidence Based on Structural Symmetry

Do African Monetary Arrangements Make Sense? Evidence Based on Structural Symmetry

South-south monetary integration: the case for a research framework beyond the theory of optimum currency area

What Drives China's Growing Role in Africa?

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