The Political and Economic Dimension of Monetary Unions |
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Authors: | Filippo Cesarano |
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Institution: | (1) Banca d’Italia, Servizio Studi, Via Nazionale, 91, 00184 Roma, Italy |
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Abstract: | This paper investigates the relationship between the political and economic aspects of monetary unions. After illustrating the recent change in approach to the theory of optimum currency areas (section 2), the paper analyzes the momentous implications of union members maintaining political sovereignty (section 3) for the notion of currency area optimality and the viability of monetary unions (section 4). |
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