000			01085pab a2200169 454500
008			180718b2002 xxu||||| |||| 00| 0 eng d
100			_aHesina, Alberto
245			_aCurrency unions
260			_c2002
300			_ap.409-36.
362			_aMay
520			_aCommon currencies affect trading costs and, thereby, the amounts of trade, output, and consumption. From the perspective of monetary policy, the adoption of another country's currency trades off the benefits of commitment to price stability (if a committed anchor is selected) against the loss of an independent stabilization policy. We show that the type of country that has more to gain from giving up its own currency is a small open economy heavily trading with one particular large partner, with a history of high inflation and with a business cycle highly correlated with that of the potential "anchor". We also characterize the features of the optimal number of currency unions. - Reproduced.
650			_aCurrencies
700			_aBarro, Robert J.
773			_aQuarterly Journal of Economics
909			_a52363
999			_c52363 _d52363