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On the feasibility of a monetary union in the Southern Africa Development Community

✍ Scribed by Terence D. Agbeyegbe

Publisher
John Wiley and Sons
Year
2008
Tongue
English
Weight
130 KB
Volume
13
Category
Article
ISSN
1076-9307

No coin nor oath required. For personal study only.

✦ Synopsis

Abstract

This paper investigates the feasibility of a monetary union in Southern Africa Development Community (SADC) by looking at evidence of nominal exchange rate and inflation convergence. Using a methodology based on estimating time‐varying parameters, the evidence suggests non‐convergence. The non‐convergence of nominal exchange rate and consumer price inflation suggests that presently the chances of SADC member countries satisfying some form of Maastricht‐type criteria is quite low. Copyright © 2007 John Wiley & Sons, Ltd.

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