Author: Bassem Kamar
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 40
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Book Description
Coordinating macroeconomic policies is a pre-requisite to a successful launch of the common currency in the GCC countries. Relying on the Behavioral Equilibrium Exchange Rate approach as a theoretical framework, we apply the Pooled Mean Group methodology to determine the similarity of the impact of a selected set of macroeconomic indicators on the real exchange rate in each country. Our empirical evidence points to a clear coordination of monetary policy, fiscal policy, government consumption, and openness across the member countries. While RER misalignments also show a substantial convergence building over time, differences in the misalignments of the two polar cases remain rather substantial, calling for further coordination and policy harmonization.
Author: Rana Sami El Helou
Publisher:
ISBN:
Category :
Languages : en
Pages : 158
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Book Description
The first and introductory chapter will describe the Gulf Cooperation Council (G CC) and the objectives of the research. The second chapter of this research will be an overview of monetary policies in the six countries that are members of GC C. It will describe the institutions that conduct the policies; and the instrume nts, targets, goals of each country's policy. It will also present a comparison of those policies. The third chapter will tackle exchange rate regimes in relati on with monetary policy. It will focus on each policy's target with respect to exchange rate and whether this target is achieved or not. Then it will analyze w hether each country's exchange rate regime is the optimal one or whether further coordination between members of the council will lead to an even better exchang e rate system for the countries concerned. The fourth and concluding chapter wil l study the implications of monetary policy and exchange rate on the sustainabil ity of fiscal policies, financial growth, balance of payment, and macroeconomic stability. Finally, the fifth and concluding chapter will review the main findin gs of this research. These conclusions state that there is a strong degree of mo netary integration to support the currency union that is expected to take place in 2010. However GCC countries need to work on fiscal convergence. Also, there i s a strong need for the diversification of certain GCC economies from oil produc tion since their reserves are being depleted.
Author:
Publisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 56
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Book Description
Given the low level of economic integration within the ESCWA region, this study examines the case for increased policy coordination and, ultimately, the adoption of a common single currency. Such adoption is likely to succeed if optimum currency area (OCA) conditions are fulfilled. One of the key OCA theory positions is that business cycle symmetry among currency union members is necessary in order to carry out a common monetary policy. On the other hand, asymmetric cycles imply that different areas of the currency union would require different monetary policy responses. In order to achieve this objective, this report assesses the degree of business cycle synchronization in the ESCWA region. This is relevant for the purpose of providing a better understanding of the influence of important trading partners on business cycle fluctuations in the domestic economy. Moreover, it has an important implication in terms of evaluating costs and benefits of macroeconomic coordination. Following an evaluation and calculation of measures of intraregional trade (trade intensity) and economic structure differences, this report quantifies the relationship between trade intensity, economic structure and business cycle synchronization; and discusses how trade integration within ESCWA member countries is likely to shape future business cycle patterns within the region.--Publisher's description.
Author: Mr.Esteban Jadresic
Publisher: International Monetary Fund
ISBN: 1451969481
Category : Business & Economics
Languages : en
Pages : 27
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Book Description
This paper assesses the eventual replacement of the currencies of the GCC countries with a common currency. It concludes that a properly implemented currency union may contribute to enhance economic efficiency in the region, deepen regional integration, and develop its non-oil economy. However, it cautions that a currency union should be seen as only one component of a much broader integration effort. This should include the removal of the distortions that inhibit intraregional trade and investment, agreements on policy frameworks to ensure macroeconomic stability, and further political integration. The paper also addresses the choice of exchange rate arrangement for the unified currency.
Author: Ugo Fasano-Filho
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 76
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Book Description
The six member countries of the Gulf Cooperation Council (GCC)--Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates--have made important progress toward economic and financial integration, with the aim of establishing an economic and monetary union. This paper provides a detailed analysis of the economic performance and policies of the GCC countries during 1990-2002. Drawing on the lessons from the experience of selected currency and monetary unions in Africa, Europe, and the Caribbean, it assesses the potential costs and benefits of a common currency for GCC countries and also reviews the options for implementing a monetary union among these countries.
Author: Manhal M. Shotar
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
The aim of this study is to identify the extent to which the GCC countries can adopt similar economic policies by the time of the formation of the GCC unified currency in 2010. Among many other convergence standards, the study suggests to examine the economic structure of the GCC countries to identify similarities. Estimating the model using SURE technique, the study finds significant differences between GCC countries economic policies. The results suggest that GCC countries need to grant more policy coordination to lessen the differences in order to facilitate better design of unified economic policies that are conducive to the establishment of a monetary union.
Author: Michael Carlberg
Publisher:
ISBN: 9783642534782
Category :
Languages : en
Pages : 292
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Book Description
Author: Richard Portes
Publisher:
ISBN:
Category : Fiscal policy
Languages : en
Pages : 42
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Book Description
Author: Montaha Ahmad Abboud
Publisher:
ISBN:
Category : Persian Gulf States
Languages : en
Pages : 196
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Book Description
Under the main goal of enhancing political and economic integration, the Gulf Co operation Council (GCC) was established in 1981 to include its six members Bahra in, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates. Several steps ha ve been taken to increase the degree of economic integration among its members, the last of which was the GCC Monetary Union which is planned to be set up by Ja nuary 2010. The main goal of this project is to introduce the GCC and test whether its membe rs are ready to enter its monetary union by the set deadline in 2010 by checking the level of macroeconomic policy convergence among its members. After introduc ing the Gulf Cooperation Council and discussing some of its achievements and agr eements in Chapter I, this project then introduces the GCC Monetary Union, its r ecent developments, its advantages and disadvantages and several other relevant points such as the applicability of the GCC as an OCA, and the choice of a peg f or the union's common currency in Chapter II. Following the previous introductions, the project then moves to the empirical pa rt of its work in Chapter IV. It is divided into two main parts; normal panel re gressions and forecasted panel regressions. After the literature review, the pre sentation of the variables, and the coverage of the several tests required to pe rform a fixed effect panel regression, the relevant long run equilibrium and sho rt run error correction models are conducted. The second part of the empirical w ork then goes on to forecast, using Box-Jenkins methodology, the rest of the dat a till the year 2010 to test whether GCC members are likely to achieve a higher level of macroeconomic policy convergence or not. The empirical work then conclu des that GCC member have only achieved partway convergence till now but are on t he right path as forecasts reveal an increase in the degree of convergence by th e year 2010. Finally, Chapter V concludes by a small discussion of the financial crisis and some of the relevant actions taken by the GCC members. This chapter then conclud es that despite all efforts to enhance economic integration among GCC members, t he establishment of a monetary union by 2010 is more a matter of economic will t han any economic efforts.
Author: Emilie Rutledge
Publisher: Routledge
ISBN: 1134046308
Category : Business & Economics
Languages : en
Pages : 198
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Book Description
At a time of momentous shifts in the balance of world economic forces epitomized by the current oil price boom, the weakening US dollar and the global credit crunch; the meteoric rise of the Arabian peninsula cannot be understated. Neither, therefore, can their planned monetary union. As key suppliers of the worlds oil and gas the Gulf states have
