Can two countries share the same currency and both prosper? PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Can two countries share the same currency and both prosper? PDF full book. Access full book title Can two countries share the same currency and both prosper? by Sabrina Schleimer. Download full books in PDF and EPUB format.
Author: Sabrina Schleimer
Publisher: GRIN Verlag
ISBN: 3668795916
Category : Business & Economics
Languages : en
Pages : 15
Get Book Here
Book Description
Seminar paper from the year 2018 in the subject Economics - Finance, grade: 1,7, University of Strathclyde (Business School), course: International Financial Markets and Banking, language: English, abstract: This assignment will examine whether two countries can share the same currency and both prosper. In order to find out, arguments both in favour and in opposition to the research question will be discussed and evaluated. Finally, a conclusion will be drawn. Before starting a detailed discussion, it is vital to establish precise definitions of the terms “sharing a currency” and “prosper”. For the purpose of this paper, “sharing a currency” is defined as being a member of a monetary union. According to Bergin (2008), a monetary union, also referred to as a currency union, is an association of at least two sovereign states which give up their national currencies to adopt a new shared currency. The author further states that by doing so, the member countries surrender their control over money supply as well as monetary policy to a shared authority, a new central bank. There are multiple currency unions all over the world, which is why, to apply this broad definition, this paper will use the Economic and Monetary Union (EMU) as an example. The second important term, “prosper”, is a little more difficult to define as there is a vast number of possible prosperity indicators, such as the unemployment rate or the wage level. For the purpose of this paper, “prosperity” is defined in accordance with Fritz and Koch (2016) as the level of “economic development and material welfare”. Thus, if this level increases, prosperity in a state also does. Fritz and Koch (2016) argue that the higher the economic development in a country, the higher its individual and social prosperity. In order to gauge the level of prosperity of a state, a number of indicators are very useful. One of the most important indicators for prosperity is the Gross Domestic Product (GDP) of a country. According to the Organisation for Economic Co-operation and Development (OECD) (Gross domestic product (GDP), 2016), the GDP indicates “the expenditure of final goods and services minus imports”. In addition to the GDP, the level of trade is an important indicator for a nation’s prosperity. As explained by the World Bank (Exports of goods and services (% of GDP), 2017), it is determined by the exports of both goods and services as a share of the respective country’s GDP.
Author: Sabrina Schleimer
Publisher: GRIN Verlag
ISBN: 3668795916
Category : Business & Economics
Languages : en
Pages : 15
Get Book Here
Book Description
Seminar paper from the year 2018 in the subject Economics - Finance, grade: 1,7, University of Strathclyde (Business School), course: International Financial Markets and Banking, language: English, abstract: This assignment will examine whether two countries can share the same currency and both prosper. In order to find out, arguments both in favour and in opposition to the research question will be discussed and evaluated. Finally, a conclusion will be drawn. Before starting a detailed discussion, it is vital to establish precise definitions of the terms “sharing a currency” and “prosper”. For the purpose of this paper, “sharing a currency” is defined as being a member of a monetary union. According to Bergin (2008), a monetary union, also referred to as a currency union, is an association of at least two sovereign states which give up their national currencies to adopt a new shared currency. The author further states that by doing so, the member countries surrender their control over money supply as well as monetary policy to a shared authority, a new central bank. There are multiple currency unions all over the world, which is why, to apply this broad definition, this paper will use the Economic and Monetary Union (EMU) as an example. The second important term, “prosper”, is a little more difficult to define as there is a vast number of possible prosperity indicators, such as the unemployment rate or the wage level. For the purpose of this paper, “prosperity” is defined in accordance with Fritz and Koch (2016) as the level of “economic development and material welfare”. Thus, if this level increases, prosperity in a state also does. Fritz and Koch (2016) argue that the higher the economic development in a country, the higher its individual and social prosperity. In order to gauge the level of prosperity of a state, a number of indicators are very useful. One of the most important indicators for prosperity is the Gross Domestic Product (GDP) of a country. According to the Organisation for Economic Co-operation and Development (OECD) (Gross domestic product (GDP), 2016), the GDP indicates “the expenditure of final goods and services minus imports”. In addition to the GDP, the level of trade is an important indicator for a nation’s prosperity. As explained by the World Bank (Exports of goods and services (% of GDP), 2017), it is determined by the exports of both goods and services as a share of the respective country’s GDP.
Author: Eswar Prasad
Publisher: Brookings Institution Press
ISBN: 0815738544
Category : Business & Economics
Languages : en
Pages : 203
Get Book Here
Book Description
" Assessing the potential benefits and risks of a currency union Leaders of the fifteen-member Economic Community of West African States (ECOWAS) have set a goal of achieving a monetary and currency union by late 2020. Although some progress has been made toward achieving this ambitious goal, major challenges remain if the region is to realize the necessary macroeconomic convergence and establish the required institutional framework in a relatively short period of time. The proposed union offers many potential benefits, especially for countries with historically high inflation rates and weak central banks. But, as implementation of the euro over the past two decades has shown, folding multiple currencies, representing disparate economies, into a common union comes with significant costs, along with operational challenges and transitional risks. All these potential negatives must be considered carefully by ECOWAS leaders seeking tomeet a self-imposed deadline. This book, by two leading experts on economics and Africa, makes a significant analytical contribution to the debates now under way about how ECOWAS could achieve and manage its currency union, andthe ramifications for the African continent. "
Author: Thomas Krueger
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 26
Get Book Here
Book Description
Why do different countries have different currencies? Traditional answers to this question assume that governments can use their ability to create money to affect exchange rates, output, prices or revenue. However, such explanations are difficult to reconcile with several empirical facts. For example, there have been long periods in history in which countries followed fixed exchange rate regimes or pegged their currencies to the price of gold or other precious metals. These episodes include, among others, the gold standard of the 19th and early 20th century as well as the post-war era of fixed exchange rates under the Bretton-Woods regime. In all of these cases, the ability of national authorities to create money, and in particular to create money at nationally differentiated growth rates, was extremely limited. Nonetheless, throughout these periods, countries generally found it in their interest to maintain different currencies.
Author: Barry Eichengreen
Publisher: Oxford University Press
ISBN: 0199753784
Category : Business & Economics
Languages : en
Pages : 224
Get Book Here
Book Description
It is, as a critic of U.S.
Author: John F. Bilson
Publisher: University of Chicago Press
ISBN: 0226050998
Category : Business & Economics
Languages : en
Pages : 542
Get Book Here
Book Description
This volume grew out of a National Bureau of Economic Research conference on exchange rates held in Bellagio, Italy, in 1982. In it, the world's most respected international monetary economists discuss three significant new views on the economics of exchange rates - Rudiger Dornbusch's overshooting model, Jacob Frenkel's and Michael Mussa's asset market variants, and Pentti Kouri's current account/portfolio approach. Their papers test these views with evidence from empirical studies and analyze a number of exchange rate policies in use today, including those of the European Monetary System.
Author: Jeffry A. Frieden
Publisher: Princeton University Press
ISBN: 1400865344
Category : Business & Economics
Languages : en
Pages : 318
Get Book Here
Book Description
The politics surrounding exchange rate policies in the global economy The exchange rate is the most important price in any economy, since it affects all other prices. Exchange rates are set, either directly or indirectly, by government policy. Exchange rates are also central to the global economy, for they profoundly influence all international economic activity. Despite the critical role of exchange rate policy, there are few definitive explanations of why governments choose the currency policies they do. Filled with in-depth cases and examples, Currency Politics presents a comprehensive analysis of the politics surrounding exchange rates. Identifying the motivations for currency policy preferences on the part of industries seeking to influence politicians, Jeffry Frieden shows how each industry's characteristics—including its exposure to currency risk and the price effects of exchange rate movements—determine those preferences. Frieden evaluates the accuracy of his theoretical arguments in a variety of historical and geographical settings: he looks at the politics of the gold standard, particularly in the United States, and he examines the political economy of European monetary integration. He also analyzes the politics of Latin American currency policy over the past forty years, and focuses on the daunting currency crises that have frequently debilitated Latin American nations, including Mexico, Argentina, and Brazil. With an ambitious mix of narrative and statistical investigation, Currency Politics clarifies the political and economic determinants of exchange rate policies.
Author: Bruno Dallago
Publisher: World Scientific
ISBN: 9814759031
Category : Business & Economics
Languages : en
Pages : 649
Get Book Here
Book Description
The aftermath of the US subprime mortgage crisis in 2008 saw its influence spread around the world, including Europe. The European crisis turned out to be longer, deeper and more resilient than anticipated. An unexpected consequence was the increasingly divergent economic and financial situation of two main groups of countries within the Eurozone, which includes the countries that adopt the euro as their common currency. The divergence was caused by a number of factors, fundamentally stemming from the dissimilar economic and financial situation of its member countries and from the incomplete institutional architecture and the monetary and fiscal policies in the Eurozone.One Currency, Two Europes: Towards a Dual Eurozone seeks to explore these factors which give rise to the Eurozone's asymmetric composition and the growing difficulties and ineffectiveness that policies meet. It presents evidence to show how the presently incomplete institutional architecture of the Eurozone is the main reason for the extreme detrimental effects of the international crisis and austerity policies, along with the asymmetric economic situation and the insufficient mutual trust demonstrated by the vulnerable as well as resilient countries.Other than presenting a complete overview and analysis of the events that unfolded in the Eurozone as a result of the financial crisis that first emerged in the US, this book also suggests possible solutions which could help to reunify the Eurozone, and make the common currency sustainable and beneficial for all member countries. One Currency, Two Europes will be useful for policymakers who want to learn from the Eurozone's experience with the financial crisis and the importance of complete institutional architectures and inter-country economic convergence. It will also serve as a reference to students and researchers who would like more in-depth analysis of the crisis and the Eurozone's fiscal, monetary and institutional past, present, and future.
Author: Camila Casas
Publisher: International Monetary Fund
ISBN: 1484330609
Category : Business & Economics
Languages : en
Pages : 62
Get Book Here
Book Description
Most trade is invoiced in very few currencies. Despite this, the Mundell-Fleming benchmark and its variants focus on pricing in the producer’s currency or in local currency. We model instead a ‘dominant currency paradigm’ for small open economies characterized by three features: pricing in a dominant currency; pricing complementarities, and imported input use in production. Under this paradigm: (a) the terms-of-trade is stable; (b) dominant currency exchange rate pass-through into export and import prices is high regardless of destination or origin of goods; (c) exchange rate pass-through of non-dominant currencies is small; (d) expenditure switching occurs mostly via imports, driven by the dollar exchange rate while exports respond weakly, if at all; (e) strengthening of the dominant currency relative to non-dominant ones can negatively impact global trade; (f) optimal monetary policy targets deviations from the law of one price arising from dominant currency fluctuations, in addition to the inflation and output gap. Using data from Colombia we document strong support for the dominant currency paradigm.
Author: Morrison Bonpasse
Publisher:
ISBN: 9780977842605
Category : International finance
Languages : en
Pages : 408
Get Book Here
Book Description
This 2014 Edition of THE SINGLE GLOBAL CURRENCY - COMMON CENTS FOR THE WORLD is the fifth book of this name, and it updates the text of the original 2006 edition. The 2007, 2008 and 2009 editions included the original edition together with an annual update appendix. Future editions are planned in five year increments for 2019 and 2024, the latter date being the 80th anniversary of the 1944 Bretton Woods Conference. The book is for all readers around the world, as every human being in our increasingly globalized world has an interest in achieving the goal of a Single Global Currency. What the people of the world want and deserve is stable money, so that the money they earn, save and invest today will be worth almost the same tomorrow. The Single Global Currency will provide that stability. It is the common cents/sense currency for our increasingly globalized world. The current multicurrency global monetary system is volatile and extremely risky as $5.3 trillion worth of currencies are traded every trading day on the global foreign exchange markets. Currencies crises are a continuing threat. Avoiding the effects and risks of currency fluctuations and rapid flows of cross-currency capital were the primary goals of the International Monetary Fund at its 1945 creation, and the Single Global Currency will solve both problems. The Single Global Currency will be managed by a Global Central Bank within a Global Monetary Union. Since 1999, the primary model for this "3-G" system has been the euro which is managed by the European Central Bank within the European Monetary Union. Beginning with 12 member countries, the eurozone now has 18 members and continues to grow toward its full potential of all the members of the growing European Union, which now number 28. Creation of a Single Global Currency is not a new idea or goal, but is now feasible thanks to automation and the increasing interdependence of the world's peoples. The potential benefits of a Single Global Currency are staggering: - Worldwide asset values will increase by about $10 trillion. - Worldwide GDP will increase by $trillions. - Global trade will increase by $trillions. - Annual FX trading transaction costs of $300 billion will be avoided. - Global currency/payments imbalances will be eliminated. - Currency crises will be eliminated. - Currency speculation will be eliminated. - The need for unproductive foreign exchange reserves will be eliminated. Currently, the 193 members of the United Nations use 140 currencies for their international and domestic transactions. The 50+ members without their own national currencies are using the currencies of monetary unions of which they are members, or they are using ("izing") the currencies of other countries or monetary unions. As existing monetary unions in Europe, the Caribbean and Africa are expanded, and as new monetary unions are created in Africa, the Americas, Asia and the Mid-East, the number of currencies will continue to decline. At some "tipping point," perhaps after a merger of large currencies, the largest monetary union currency will likely be designated as the world's Single Global Currency. This process can be accelerated when individuals, nations and global institutions openly declare their support for a Single Global Currency and they initiate the necessary steps toward that goal. Such steps will include a global internet-based naming process for the new currency and a timeline for implementation. There is little question that the world is moving toward a Single Global Currency. The remaining question is When? The global challenge will be to achieve the Single Global Currency with a smooth transition from the existing multicurrency system. It is hoped that this book, and the work of the Single Global Currency Association (www.singleglobalcurrency.org) will help move the world in that direction.
Author: Bonnie Yan-chi Sit
Publisher:
ISBN:
Category :
Languages : en
Pages : 124
Get Book Here
Book Description
