Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/263426 
Year of Publication: 
2022
Series/Report no.: 
IZA Discussion Papers No. 15210
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper investigates the East African Community (EAC) partner states' readiness for a common currency. It uses recent data to assess the impact of policy coordination in the region during the last seven years of East African Monetary Union's protocol implementation. Despite some similarities in the structures of EAC economies, EAC member states remain susceptible to asymmetric shocks. Inflation is in the process of converging in EAC, but the speed of convergence is slow. Time is needed for preparing and for harmonizing policy before adopting the common currency. Adopting a common currency will lead to considerable costs for EAC countries.
Subjects: 
East African Community
monetary union
common currency
policy harmonization
convergence
regional integration
JEL: 
E42
F33
N17
O23
Document Type: 
Working Paper

Files in This Item:
File
Size
518.74 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.