CAPE VERDE: THE CASE FOR EUROISATION |
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| Authors: | Joao Loureiro Manuel Mf Martins Ana Paula Ribeiro |
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| Institution: | 1. CEF.UP and Faculdade de Economia, Universidade do Porto, Portugal;2. CEF.UP and Faculdade de Economia, Universidade do Porto, Portugal. E‐mail: mmfmartins@fep.up.pt.;3. CEF.UP and Faculdade de Economia, Universidade do Porto, Portugal. E‐mail: aribeiro@fep.up.ptCEF.UP – Centre for Economics and Finance at the University of Porto – is supported by the Funda??o para a Ciência e a Tecnologia (FCT), Portugal. |
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| Abstract: | After a decade of a successful peg to the euro, the authorities of Cape Verde are considering the official euroisation of the country. For an ex ante economic evaluation of such a move, this paper assesses whether Cape Verde fulfills key economic criteria devised by the optimum currency areas literature, using as benchmark the comparable records of the 27 European Union (EU) countries. The answer is positive. Overall, we find that Cape Verde is not less suited for euroisation than some of the current euro area members and most of the remaining members of the EU. |
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| Keywords: | E32 E52 E58 F33 Cape Verde euro euroisation optimum currency areas business cycles synchronisation trade integration |
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