المستخلص: |
The objective of this paper is to develop a model framework for achieving a feasible monetary union in existing economic blocs and can be applicable to new economic blocs. Mundell's theory of optimal currency areas is discussed and applied to the analysis of economic blocs. Political theories on regional integration and self-interest are further analyzed. Results prove that a monetary union depends on the level of economic bloc integration, labor mobility, economic diversification. They are affected by self-interests, political and economic external forces. Several prerequisites exist for the development of a monetary union including a common market, a central banking system, and a support system. Several economic blocs have been discussed as case studies.
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