Currency union in Mercosul

Vol. 24 No. 1 (2004)

Jan-Mar / 2004
Published January 1, 2004
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Mendonça, Helder Ferreira de, and Anabel da Silva. 2004. “Currency Union in Mercosul”. Brazilian Journal of Political Economy 24 (1):121-36. https://doi.org/10.1590/0101-31572004-1631.

Currency union in Mercosul

Helder Ferreira de Mendonça
Departamento de Economia da Universidade Federal Fluminense – UFF, Niterói/RJ, Brasil.
Anabel da Silva
Departamento de Economia da Universidade Federal Fluminense - UFF, Niterói/RJ, Brasil
Brazilian Journal of Political Economy, Vol. 24 No. 1 (2004), Jan-Mar / 2004, Pages 121-136

Abstract

“Currency Union in Mercosul”. Nowadays, influenced by the European experience, several Brazilian economists have given special attention to the possibility of a currency union among the countries of Mercosul. This paper makes a brief analysis of the main theoretical aspects that represent the basis for the proposition of a currency area. Besides this, the paper shows two distinct views in the national literature concerning the hypothesis of the creation of a currency area for the Mercosul. The main conclusion of this article is that the proposal mentioned above is not feasible, because the costs of macroeconomic coordination are too high.

JEL Classification: E42; F33.


Keywords: Monetary union Mercosur monetary system