Do Currency Unions Grow Too Large For Their Own Good
Bibliographic Data
| ID | 9709979 |
|---|---|
| Authors | John Maloney (0000-0003-3249-8926, University of Exeter), Malcolm Macmillen (University of Exeter) |
| Year | 1999 |
| Volume | 109 |
| Issue | 458 |
| Pages | 572-587 |
| Publication date | 1999-10-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/1468-0297.00463 |
| OpenAlex | W2047855812 |
| Language | EN |
| Citations received | 1 |
This article puts a rigorous foundation under the proposition that currency areas, as they admit more members, face a rising marginal cost curve which cuts the marginal benefit curve from below. However, at any given time, the median member faces lower marginal cost than the average member, so that, if new members are admitted by majority vote, and existing members are myopic, the currency area will expand beyond its optimum size. Although the currency area imposes negative externalities on countries outside it, we find that the existence of one currency union has no effect on the costs or benefits of forming or enlarging another
Currency · Currency union · Economics · Externality · International economics · Marginal cost · Microeconomics · Monetary economics · Optimum currency area · Proposition · Single currency · Global Financial Crisis and Policies
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,17 |
| Citation span | 2020 - 2020 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |