An Assessment of the Case for Monetary Union or Official Dollarization in Argentina, Brazil, Chile, Uruguay and Venezuela

Paul Hallwood, Ian Marsh () and Jörg Scheibe

No 2004-13, Working papers from University of Connecticut, Department of Economics

Abstract: We use a data set covering the whole period of Argentina's currency board and most of that spanned by the Mercosur trade agreement to examine the case for either a Latin American monetary union or monetary union with the USA (through official dollarization). Our econometric evidence using VAR techniques indicates that macroeconomic shocks are still so highly asymmetric in Latin America and between Latin American countries and the USA as to make monetary union or official dollarization somewhat doubtful policies.

Keywords: dollarization; monetary union; Argentina; Brazil; Chile; Uruguay; Venezuela (search for similar items in EconPapers)
JEL-codes: F31 F33 F41 F42 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2004-07
New Economics Papers: this item is included in nep-ifn
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Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:uct:uconnp:2004-13

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