Monetary Unions and Hard Pegs: Effects on Trade, Financial Development, and Stability by Volbert AlexanderMonetary Unions and Hard Pegs: Effects on Trade, Financial Development, and Stability by Volbert Alexander

Monetary Unions and Hard Pegs: Effects on Trade, Financial Development, and Stability

EditorVolbert Alexander, George M. von Furstenberg, Jacques Melitz

Hardcover | March 23, 2006

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Financial services with global reach are becoming ever more important in the conduct and organization of the trade and investment of nations, and currencies that lack international standing lose out in this business. The result of financial development has been destabilizing currency andportfolio substitution -- in favour of international currencies and against local ones.This book analyses formal approaches to overcoming monetary divisions within countries and within integrating regions, focusing on the consequences of monetary union for trade among union members and their financial development and stability. The authors discuss hard pegs such as those attempted bythe currency board of Argentina, outright dollarization, such as in Ecuador, and multilateral monetary union, as in Europe, the least reversible form of monetary union and the most powerful elixir of financial integration and trade.The political classes and central banks in most countries have been reluctant to admit the market- and technology-driven forces of currency consolidation, much less yield to them. International financial institutions too are still in the habit of proffering advice about national monetary andexchange-rate policies on the assumption that getting rid of both is not even an option. Emerging-market countries, in particular, have to choose between retaining what independent monetary means they still have -- and can safely use in the presence of widespread liability dollarization and currencymismatches -- and formally replacing the domestic with an international currency to reduce exposure to debilitating financial crises. In concrete investigations of this choice, this volume shows that monetary union deserves a much more sympathetic hearing.
Volbert Alexander is Professor of Money and Banking at the Economics Department of the University of Giessen (Germany). Prior to his appointment in 1986 he was Professor of Economics at the Universities of Trier and Siegen (Germany). From 1997 to 1999 he served as a Chief Economist and Director of Research at Hypobank in Munich. He is...
Title:Monetary Unions and Hard Pegs: Effects on Trade, Financial Development, and StabilityFormat:HardcoverDimensions:398 pages, 9.21 × 6.14 × 1.07 inPublished:March 23, 2006Publisher:Oxford University PressLanguage:English

The following ISBNs are associated with this title:

ISBN - 10:0199271402

ISBN - 13:9780199271405


Table of Contents

Robert A. Mundell: Preface1. Volbert Alexander, Jacques Melitz, and George M. von Furstenberg: Editorial IntroductionPart I: Current and Past Concepts of Monetary Union2. Dominick Salvatore, Fordham University, New York: Euroization, Dollarization and the International Monetary System3. Ignazio Angeloni, European Central Bank, Frankfurt: Unilateral and Multilateral Currency Unions: Thoughts from an EMU Perspective4. Gerald P. Dwyer, Jr., Federal Reserve Bank of Atlanta and James R. Lothian, Fordham University, New York: International Money and Common Currencies in Historical PerspectivePart II: Trade and Price Effects of Monetary Union5. Jacques Melitz, University of Strathclyde, Glasgow, UK: Geography, Trade and Currency Union6. Volker Nitsch, Bankgesellschaft Berlin: Comparing Apples and Oranges: The Effect of Multilateral Currency Unions on Trade7. Andrew K. Rose, University of California, Berkeley: The Effect of Common Currencies on International Trade: a Meta-Analysis8. Alberto E. Isgut, Wesleyan University, Middletown CT: Common Currencies and Market Integration Across Cities: How Strong is the Link?Common Currencies and Market Integration Across Cities: How Strong is the Link?Part III: Monetary Integration In Latin America9. Eduardo Fernandez-Arias, Ugo Panizza, and Ernesto Stein, Inter-American Development Bank, Washington, DC: Trade Agreements, Exchange Rate Disagreements10. Guillermo A. Calvo, Alejandro Izquierdo, and Ernesto Talvi, Inter-American Development Bank: Sudden Stops, the Real Exchange Rate and Fiscal Sustainability: Argentina's Lessons11. Augusto de la Torre, World Bank, Eduardo Levy Yeyati, UTDT (Argentina), and Sergio L. Schmuckler, World Bank: Living and Dying with Hard Pegs: The Rise and Fall of Argentina's Currency Board12. Guillermo Perry and Luis Serven, World Bank: Anatomy of a Multiple Crisis: Why Was Argentina Special and What Have We Learned from It?Part IV: Common Monies, Political Interests, and Infrastructure13. Benjamin J. Cohen, University of California, Santa Barbara: America's Interest in Dollarization14. Edgar L. Feige, University of Wisconsin, Madison and James W. Dean, Simon Fraser University, Vancouver: Dollarization and Euroization in Transition Countries: Currency Substitution, Asset Substitution, Network Externalities and Irreversibility15. Claudia Costa Storti, Banco de Portugal and Paul De Grauwe, University of Leuven and CEPR: Electronic Money and The Optimal Size Of Monetary Unions16. Hans Genberg, Graduate Institute of International Studies in Geneva, Switzerland: Currency Substitution in Anticipation of EU Accession17. Charles M. Kahn, University of Illinois, Urbana-Champaign and Joao A. C. Santos, Federal Reserve Bank of New York: Allocating Lending of Last Resort and Supervision in the Euro AreaIndex