Research Catalog

Title

Macroeconomic Convergence in Southern Africa [electronic resource]: The Rand Zone Experience / Martin Grandes

Author

Grandes, Martin.

Publication

Paris : OECD Publishing, 2003.

Details

Description

40 p.; 21 x 29.7cm.

Summary

In this paper we aim to answer the following two questions: 1) has the Common Monetary Area in Southern Africa (henceforth CMA) ever been an optimal currency area (OCA)? 2) What are the costs and benefits of the CMA for its participating countries? In order to answer these questions, we carry out a two-step econometric exercise based on the theory of generalised purchasing power parity (G-PPP). The econometric evidence shows that the CMA (but also Botswana as a de facto member) form an OCA given the existence of common long-run trends in their bilateral real exchange rates. Second, we also test that in the case of the CMA and Botswana the smoothness of the operation of the common currency area — measured through the degree of relative price correlation — depends on a variety of factors. These factors signal both the advantages and disadvantages of joining a monetary union. On the one hand, the more open and more similarly diversified the economies are, the higher the benefits they ...

Series Statement

OECD Development Centre Working Papers, 1815-1949 ; no.231

Uniform Title

OECD Development Centre Working Papers, no.231.

Subject

Development

LCCN

10.1787/731274772335

OCLC

oecd-lib-000746

Author

Grandes, Martin.

Title

Macroeconomic Convergence in Southern Africa [electronic resource]: The Rand Zone Experience / Martin Grandes

Imprint

Paris : OECD Publishing, 2003.

Series

OECD Development Centre Working Papers, 1815-1949 ; no.231

OECD Development Centre Working Papers, 1815-1949 ; no.231.

Connect to:

http://dx.doi.org/10.1787/731274772335

Indexed Term

Development

Other Standard Identifier

10.1787/731274772335 doi