000			01214pab a2200193 454500
008			180718b2002 xxu||||| |||| 00| 0 eng d
100			_aFrankel, Jeffrey
245			_aAn estimate of the effect of common currencies on trade and income
260			_c2002
300			_ap.437-66.
362			_aMay
520			_aTo quantify the implications of common currencies for trade and income, we use data for over 200 countries and dependencies. In our two-stage approach, estimates at the first stage suggest that belonging to a currency union/board triples trade with other currency union members. Moreover, there is no evidence of trade diversion. Our estimates at the second stage suggest that every 1 percent increase in a country's overall trade (relative to GDP) raises income per capita by at least one-third of a percent. We combine the two estimates to quantify the effect of common currencies on output. Our results support the hypothesis that important beneficial effects of currency unions come through the promotion of trade. - Reproduced.
650			_aIncome
650			_aTrade
650			_aCurrencies
700			_aRose, Andrew
773			_aQuarterly Journal of Economics
909			_a52362
999			_c52362 _d52362