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Regional Monetary Cooperation in Emerging, Transition, and Developing Economies

In: Palgrave Dictionary of Emerging Markets and Transition Economics

Author

Listed:
  • Barbara Fritz
  • Laurissa Mühlich

Abstract

This chapter systematically examines the variety of regional cooperation arrangements in the developing world that range from regional payment systems over the pooling of reserves to exchange rate coordination. The main contribution of regional monetary cooperation to enhancing the shock buffering ability of its member countries is to provide short-term liquidity and to increase regional trade and financial links. The potential for shock buffering is dependent on the chosen form of regional monetary cooperation. In contrast to full monetary integration which is highly demanding in terms of policy coordination, the requirements for regional policy coordination are significantly lower, depending on the form and aim of regional monetary cooperation arrangements.

Suggested Citation

  • Barbara Fritz & Laurissa Mühlich, 2015. "Regional Monetary Cooperation in Emerging, Transition, and Developing Economies," Palgrave Macmillan Books, in: Jens Hölscher & Horst Tomann (ed.), Palgrave Dictionary of Emerging Markets and Transition Economics, chapter 6, pages 112-129, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-137-37138-6_7
    DOI: 10.1007/978-1-137-37138-6_7
    as

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