Strategic interactions and contagion effects under monetary unions
. The World Economy, 38(10), 1618-1629.
Several participants were skeptical about the gains from fiscal unions at this stage, as a complement to monetary unions
, given that many countries do not feel ready to give up political sovereignty, which comes with the implementation of a fiscal union.
Historical examples show that the aforementioned principles and rules are essential for the smooth functioning of a monetary union
. The success or failure of monetary unions
has invariably hinged on the political determination and the political ability to adjust to the collective requirements of a monetary union
Related to the literature on monetary unions
, questions such as fiscal discipline and policy coordination have been considered as highly relevant.
Regional monetary unions
widened in scope throughout history, and ended up following a political and economic course during the 19th century, one fortifying the solidarity of different peoples of adjacent countries.
The UAE's decision to opt out of the planned GCC monetary union
is a fundamental setback to the planned Gulf single currency, and illustrates a deep concern at the heart of all monetary unions
- that of ceding sovereignty over economic and monetary policy.
The world is moving towards a Single Global Currency through the creation, expansion and merger of regional monetary unions
dollar to the completion of a monetary union
took place, examine the different theoretical approaches to the formation of monetary unions
such as the market, the institutional, and the shock-therapy approach.
Euro-MP Chris Huhne, chairman of The City in Europe and council member of Britain in Europe, said, "The IoD is oblivious to the fact that there have been many successful monetary unions
- including the Gold Standard, the British-Irish Monetary Union
and the Belgium-Luxembourg monetary union
- in which there was no political superstructure whatsoever.
have been a recurring element in European history, driven by the need to overcome obstacles to trade caused by the fragmentation of political authority.
existing monetary unions
, including the union of Belgium