This book surveys the prospects for regional monetary integration
in various parts of the world. Beginning with a brief review of the
theory of optimal currency areas, it goes on to examine the
structure and functioning of the European Monetary Union, then
turns to the prospects for monetary integration elsewhere in the
world - North America, South America, and East Asia. Such
cooperation may take the form of full-fledged monetary unions or
looser forms of monetary cooperation. The book emphasizes the
economic and institutional requirements for successful monetary
integration, including the need for a single central bank in the
case of a full-fledged monetary union, and the corresponding need
for multinational institutions to safeguard its independence and
assure its accountability. The book concludes with a chapter on the
implications of monetary integration for the United States and the
US dollar.
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