The Economics of Common Currencies Proceedings of the Madrid Conference on Optimum Currency Areas Collected Works of Harry G. Johnson Series

Gathering together the papers presented at the Madrid Conference on Optimum Currency Areas in 1970 this volume represents one of the first complete surveys of the theory and policy implication of monetary integration. The book discusses:

• the economics of fixed exchange rates relevant to monetary relations within an integrated monetary area
• the evolution of economic doctrine and a survey of optimum currency area theory
• problems of policy co-ordination within a currency area
• relevance of the monetary-fiscal policy mix
• problems of monetary union in developing countries
• the book predicted the establishment of an European currency but presented the case for greater flexibility of exchange rates as an alternative to currency unification.

Foreword. Introduction Part 1: The Economics of Fixed Exchange Rates 1. Two Arguments for Fixed Rates Comments 2. The Flexibility of the Gold-Exchange Standard and Its Limits 3. The Price-Specie-Flow Mechanism and the Gold Exchange Standard: Some Exploratory Empiricism Relating to the Endogeneity of Country Money Balances 4. The Dual Currency System Revisited Part 2: The Economics of Common Currency Areas 5. Some Early Views on Monetary Integration 6. The Theory of Optimum Regional Associations Economic Policies 9. A Plan for a European Currency Comment 10. The Impact of External Markets for National Currencies on Central Bank Reserves 11. Joint Balance: Capital Mobility and the Monetary system of a Currency Area 12. Optimum Currency Areas and Latin America Ae Part 3: The Economics of Flexible Exchange Rates 13. The US Balance of Payments: Freedom or Controls 14. Flexing the International Monetary System: The Case for Gliding Parities 15. Specific Proposal for Limited Exchange Rate Flexibility 16. Flexible Exchange Rates and Traded Goods Prices: The Role of Oligopoly Pricing in the Canadian Experience . 17. The Optimal Rate of Devaluation. Index

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