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Är WAEMU och ECOWAS optimala valutaområden? En studie av valutaunioner i Västafrika

Bourghardt, Philippe LU (2014) NEKH01 20132
Department of Economics
Abstract (Swedish)
Denna studie undersöker önskvärdheten för valutaunioner i Västafrika. Både den befintliga valutaunionen WAEMU och den planerade valutaunionen inom ECOWAS behandlas. Studien belyser önskvärdheten i de två valutaunionerna utifrån teorin om optimala valutaområden där vinsterna av en valutaunion kan sammanfattas som en kredibilitetsvinst, eliminering av variabilitet i växelkurs samt en besparing i transaktionskostnader. Ekonomisk teori framhäver att riskerna med en valutaunion främst är förknippade med förekomsten av ekonomiska chocker som drabbar ett land annorlunda än övriga unionsmedlemmar. I studien belyses effekten samt risken för denna form av chock genom att studera bland annat skillnader i produktionsstruktur och samvariation i cyklisk... (More)
Denna studie undersöker önskvärdheten för valutaunioner i Västafrika. Både den befintliga valutaunionen WAEMU och den planerade valutaunionen inom ECOWAS behandlas. Studien belyser önskvärdheten i de två valutaunionerna utifrån teorin om optimala valutaområden där vinsterna av en valutaunion kan sammanfattas som en kredibilitetsvinst, eliminering av variabilitet i växelkurs samt en besparing i transaktionskostnader. Ekonomisk teori framhäver att riskerna med en valutaunion främst är förknippade med förekomsten av ekonomiska chocker som drabbar ett land annorlunda än övriga unionsmedlemmar. I studien belyses effekten samt risken för denna form av chock genom att studera bland annat skillnader i produktionsstruktur och samvariation i cyklisk output mellan länderna. Trots stora politiska och ekonomiska skillnader mellan länderna i regionen, indikerar analysen att monetär integration kan vara fördelaktigt för ett antal medlemsländer inom ECOWAS. Resultaten från studien indikerar på få belägg för att ECOWAS som helhet skulle vara ett optimalt valutaområde. För WAEMU däremot, utgör bland annat större likheter i ekonomisk struktur och en högre samvariation i cyklisk output mellan länderna, tecken på att de potentiellt utgör ett optimalt valutaområde. (Less)
Abstract
This study examines the desirability of monetary unions in West Africa. Both the existing monetary union WAEMU and the planned monetary union within ECOWAS are considered. The study highlights the desirability of the two monetary unions based on the theory of optimum currency areas, where the gains from a monetary union can be summarized as a credibility gain, the elimination of exchange rate variability and as a reduction in transaction costs. Economic theory emphasize that the risks associated with a monetary union mainly depends on the existence of economic shocks that have a different impact on one country as compared to other member countries within the monetary union. In the study, the risk and effect of this kind of shock is... (More)
This study examines the desirability of monetary unions in West Africa. Both the existing monetary union WAEMU and the planned monetary union within ECOWAS are considered. The study highlights the desirability of the two monetary unions based on the theory of optimum currency areas, where the gains from a monetary union can be summarized as a credibility gain, the elimination of exchange rate variability and as a reduction in transaction costs. Economic theory emphasize that the risks associated with a monetary union mainly depends on the existence of economic shocks that have a different impact on one country as compared to other member countries within the monetary union. In the study, the risk and effect of this kind of shock is highlighted among other things by examining differences in production structures and correlation in cyclical output between countries. Despite extensive political and economic differences between the countries in the region, the analysis indicate that monetary integration can be advantageous for some member states within ECOWAS. The results from the study indicate little evidence of ECOWAS as a whole being an optimum currency area. For WAEMU, on the other hand, greater similarities in economic structure and a higher correlation in cyclical output between countries, indicate that it potentially constitutes an optimum currency area. (Less)
Please use this url to cite or link to this publication:
author
Bourghardt, Philippe LU
supervisor
organization
alternative title
Are WAEMU and ECOWAS Optimum Currency Areas? A Study of Monetary Unions in West Africa
course
NEKH01 20132
year
type
M2 - Bachelor Degree
subject
keywords
Optimala valutaområden, Valutaunioner, WAEMU, ECOWAS, Penningpolitik
language
Swedish
id
4281379
date added to LUP
2014-02-11 13:34:19
date last changed
2014-02-11 13:34:19
@misc{4281379,
  abstract     = {{This study examines the desirability of monetary unions in West Africa. Both the existing monetary union WAEMU and the planned monetary union within ECOWAS are considered. The study highlights the desirability of the two monetary unions based on the theory of optimum currency areas, where the gains from a monetary union can be summarized as a credibility gain, the elimination of exchange rate variability and as a reduction in transaction costs. Economic theory emphasize that the risks associated with a monetary union mainly depends on the existence of economic shocks that have a different impact on one country as compared to other member countries within the monetary union. In the study, the risk and effect of this kind of shock is highlighted among other things by examining differences in production structures and correlation in cyclical output between countries. Despite extensive political and economic differences between the countries in the region, the analysis indicate that monetary integration can be advantageous for some member states within ECOWAS. The results from the study indicate little evidence of ECOWAS as a whole being an optimum currency area. For WAEMU, on the other hand, greater similarities in economic structure and a higher correlation in cyclical output between countries, indicate that it potentially constitutes an optimum currency area.}},
  author       = {{Bourghardt, Philippe}},
  language     = {{swe}},
  note         = {{Student Paper}},
  title        = {{Är WAEMU och ECOWAS optimala valutaområden? En studie av valutaunioner i Västafrika}},
  year         = {{2014}},
}