Currency Union: Analysis and lessons
Echols, Adrien J.
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The general consensus is that currency unions will ultimately unite the nations to further their capacity for growth, especially with respect to trade. Despite the benefits a union can provide, most do not withstand the test of time. The Scandinavian Currency Union and Latin Monetary Union were created in the 19th century and dissolved around the onset of World War I due in large part to a lack of political unity. The CFA with similarly disjoint national governments exists to this day . The United States serves as a benchmark against which all unions should be measured, including the relatively nascent EMU. This thesis explores how union affects trade, the creation and demise of failed unions from a historical perspective, and three unions that continue to operate.
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