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.
The report stands against the prevailing skepticism about the desirability of pursuing the objective of
monetary unions in Africa, and hence the need for fiscal convergence and multilateral surveillance among regional economic communities' member countries.
It also makes the case that in fact moving towards a
monetary union may correct the very conditions the absence of which skeptics cite against the formation of
monetary unions in Africa.
Monetary unions are not one-size-fits-all arrangements.
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 primary problem with the Euro and currencies of other
monetary unions is that they still must co-exist within the international multi-currency system itself where the value of those common currencies must still fluctuate in value against each other.
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.
Monetary unions 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
In contrast, monetary integration without political integration - as in the Latin or Scandinavian
monetary unions - was ultimately doomed to fail.
