The pros and cons of currency unions

Anna Lena Rembrecht

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Studienarbeit aus dem Jahr 2009 im Fachbereich VWL - Geldtheorie, Geldpolitik, Note: 2,0, Ruhr-Universität Bochum, Veranstaltung: ...

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Studienarbeit aus dem Jahr 2009 im Fachbereich VWL - Geldtheorie, Geldpolitik, Note: 2,0, Ruhr-Universität Bochum, Veranstaltung: Geldpolitik, Sprache: Deutsch, Abstract: The creation of the monetary union in Europe, and also the interest of some Latin American countries to adopt the U.S. dollar in the year 1999 have provoked some interest in whether entering a currency union might also be an appropriate policy direction for New Zealand, or whether New Zealand should keep its own freely floating currency. Donald T. Brash, governor of the reserve bank of New Zealand, analyzed the advantages and disadvantages of a new currency system in New Zealand in his address to the Auckland Rotary Club in 2000. Brash indicates that every decision to change a currency system has a political dimension and we have to consider, that this means the integration of the whole state in a new legal, trade and political system.