Toward a Monetary Union in the East African Community: Asymmetric Shocks, Exchange Rates, and Risk-Sharing Mechanisms

Author/Editor:

Paulo Drummond ; Ari Aisen ; Emre Alper ; Ejona Fuli ; Sébastien Walker

Publication Date:

July 20, 2015

Electronic Access:

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Disclaimer: The views expressed herein are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

This paper examines how susceptible East African Community (EAC) economies are to asymmetric shocks, assesses the value of the exchange rate as a shock absorber for these countries, and reviews adjustment mechanisms that would help ensure a successful experience under a common currency. The report draws on analysis of recent experiences and examines likely future changes in the EAC economies.

Series:

Departmental Paper No. 2015/008

Subject:

Currencies Economic integration Economic theory Exchange rate arrangements Exchange rates Foreign exchange Monetary unions Money Supply shocks

English

Publication Date:

July 20, 2015

ISBN/ISSN:

9781513562179/2616-5333

Stock No:

TMUEACEA

Pages:

58

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