Will the Euro Trigger More Monetary Unions in Africa?
The authors analyze the prospects for greater monetary integration in Africa, in the wake of the European Monetary Union. They argue that the structural characteristics of African economies, are quite different from those of European economies, but that much can be gained from monetary cooperation -...
| Main Authors: | , |
|---|---|
| Format: | Publications & Research |
| Language: | en_US |
| Published: |
World Bank, Washington, DC
2015
|
| Subjects: | |
| Online Access: | http://hdl.handle.net/10986/21403 |
| id |
okr-10986-21403 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-214032021-04-23T14:04:02Z Will the Euro Trigger More Monetary Unions in Africa? Honohan, Patrick Lane, Philip R. administrative costs balance sheet balance sheets bank insolvency bank lending Bank of England bank regulation bank reserves bank supervision banking crisis banking sector banking system banking systems banks Banque de France borrowing capital flows Central Bank central banking central banks commercial banks competitiveness contagion convertibility creditor currency currency boards currency unions depositors deposits devaluation diversification economic growth economic integration economics EMU Euro exchange controls exchange rate exchange rate policies exchange rate policy exchange rate stability exchange rate variability exchange rates external debt external shocks externalities financial authorities financial crisis financial factors financial intermediaries financial markets financial systems fiscal authorities fiscal deficits fiscal discipline fiscal policies fiscal pressure fiscal pressures fiscal restraint fixed exchange rate foreign banks formal sector French francs government debt growth rates hard currency illiquidity import substitution inflation inflation rates insolvent banks interbank markets interdependence interest rates international investment international payments lender of last resort liquidity local currencies local currency macroeconomic stability monetary authority monetary cooperation monetary financing monetary integration monetary policy monetary regimes monetary system monetary systems monetary union monetary unions nominal exchange rate nominal interest rates operating expenses payments arrears pooling portfolios prudential regulation public debt public enterprises public sector real exchange rate recession reserves securities seigniorage shareholders South African rand speculative attacks stock markets terms of trade trading transport treasury volatility vulnerability working capital monetary unions eurocurrency markets financial stability exchange rate policy economies of scale prudential regulations financial systems international cooperation pound sterling The authors analyze the prospects for greater monetary integration in Africa, in the wake of the European Monetary Union. They argue that the structural characteristics of African economies, are quite different from those of European economies, but that much can be gained from monetary cooperation - as an external agency of restraint, and for promoting stability in the financial sector. But one should not expect too much from such arrangements. There is little evidence of contagious attacks on African currencies requiring the coordination of exchange rate policies. And economies of scale in the prudential regulation of financial systems, could be achieved through international cooperation without the need for a common currency. The same is true of enhanced risk-pooling through the financial system. The European Monetary Union has only a marginal impact on the net benefits of monetary cooperation, but the euro would be a natural anchor for any African monetary union - especially if the United Kingdom, and the sterling were to join the European Monetary Union. Indeed, the most likely route to new monetary cooperation in Africa, is through a common peg to the euro. 2015-02-04T21:48:10Z 2015-02-04T21:48:10Z 2000-07 http://hdl.handle.net/10986/21403 en_US Policy Research Working Paper;No. 2393 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Europe and Central Asia Africa Europe European Union United Kingdom |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
en_US |
| topic |
administrative costs balance sheet balance sheets bank insolvency bank lending Bank of England bank regulation bank reserves bank supervision banking crisis banking sector banking system banking systems banks Banque de France borrowing capital flows Central Bank central banking central banks commercial banks competitiveness contagion convertibility creditor currency currency boards currency unions depositors deposits devaluation diversification economic growth economic integration economics EMU Euro exchange controls exchange rate exchange rate policies exchange rate policy exchange rate stability exchange rate variability exchange rates external debt external shocks externalities financial authorities financial crisis financial factors financial intermediaries financial markets financial systems fiscal authorities fiscal deficits fiscal discipline fiscal policies fiscal pressure fiscal pressures fiscal restraint fixed exchange rate foreign banks formal sector French francs government debt growth rates hard currency illiquidity import substitution inflation inflation rates insolvent banks interbank markets interdependence interest rates international investment international payments lender of last resort liquidity local currencies local currency macroeconomic stability monetary authority monetary cooperation monetary financing monetary integration monetary policy monetary regimes monetary system monetary systems monetary union monetary unions nominal exchange rate nominal interest rates operating expenses payments arrears pooling portfolios prudential regulation public debt public enterprises public sector real exchange rate recession reserves securities seigniorage shareholders South African rand speculative attacks stock markets terms of trade trading transport treasury volatility vulnerability working capital monetary unions eurocurrency markets financial stability exchange rate policy economies of scale prudential regulations financial systems international cooperation pound sterling |
| spellingShingle |
administrative costs balance sheet balance sheets bank insolvency bank lending Bank of England bank regulation bank reserves bank supervision banking crisis banking sector banking system banking systems banks Banque de France borrowing capital flows Central Bank central banking central banks commercial banks competitiveness contagion convertibility creditor currency currency boards currency unions depositors deposits devaluation diversification economic growth economic integration economics EMU Euro exchange controls exchange rate exchange rate policies exchange rate policy exchange rate stability exchange rate variability exchange rates external debt external shocks externalities financial authorities financial crisis financial factors financial intermediaries financial markets financial systems fiscal authorities fiscal deficits fiscal discipline fiscal policies fiscal pressure fiscal pressures fiscal restraint fixed exchange rate foreign banks formal sector French francs government debt growth rates hard currency illiquidity import substitution inflation inflation rates insolvent banks interbank markets interdependence interest rates international investment international payments lender of last resort liquidity local currencies local currency macroeconomic stability monetary authority monetary cooperation monetary financing monetary integration monetary policy monetary regimes monetary system monetary systems monetary union monetary unions nominal exchange rate nominal interest rates operating expenses payments arrears pooling portfolios prudential regulation public debt public enterprises public sector real exchange rate recession reserves securities seigniorage shareholders South African rand speculative attacks stock markets terms of trade trading transport treasury volatility vulnerability working capital monetary unions eurocurrency markets financial stability exchange rate policy economies of scale prudential regulations financial systems international cooperation pound sterling Honohan, Patrick Lane, Philip R. Will the Euro Trigger More Monetary Unions in Africa? |
| geographic_facet |
Africa Europe and Central Asia Africa Europe European Union United Kingdom |
| relation |
Policy Research Working Paper;No. 2393 |
| description |
The authors analyze the prospects for greater monetary integration in Africa, in the wake of the European Monetary Union. They argue that the structural characteristics of African economies, are quite different from those of European economies, but that much can be gained from monetary cooperation - as an external agency of restraint, and for promoting stability in the financial sector. But one should not expect too much from such arrangements. There is little evidence of contagious attacks on African currencies requiring the coordination of exchange rate policies. And economies of scale in the prudential regulation of financial systems, could be achieved through international cooperation without the need for a common currency. The same is true of enhanced risk-pooling through the financial system. The European Monetary Union has only a marginal impact on the net benefits of monetary cooperation, but the euro would be a natural anchor for any African monetary union - especially if the United Kingdom, and the sterling were to join the European Monetary Union. Indeed, the most likely route to new monetary cooperation in Africa, is through a common peg to the euro. |
| format |
Publications & Research |
| author |
Honohan, Patrick Lane, Philip R. |
| author_facet |
Honohan, Patrick Lane, Philip R. |
| author_sort |
Honohan, Patrick |
| title |
Will the Euro Trigger More Monetary Unions in Africa? |
| title_short |
Will the Euro Trigger More Monetary Unions in Africa? |
| title_full |
Will the Euro Trigger More Monetary Unions in Africa? |
| title_fullStr |
Will the Euro Trigger More Monetary Unions in Africa? |
| title_full_unstemmed |
Will the Euro Trigger More Monetary Unions in Africa? |
| title_sort |
will the euro trigger more monetary unions in africa? |
| publisher |
World Bank, Washington, DC |
| publishDate |
2015 |
| url |
http://hdl.handle.net/10986/21403 |
| _version_ |
1764448162314977280 |