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To “ECO” or not to “ECO”? Evidence for the single currency agenda of ECOWAS

Author

Listed:
  • Adediran, Idris
  • Salisu, Afees
  • Ogbonna, Ahamuefula E

Abstract

In this study, we provide results to aid the ECOWAS in its final decision on the adoption of the single currency (the “ECO”) for the proposed regional monetary union. We demonstrate, with the fractional integration and cointegration techniques, evidences for the proposed monetary policy mechanism in the region to deal with shocks and the single currency to serve as a stabilisation tool. Hence, the results support the adoption of the ECO, with emphasis on preferably linking it with the US dollar than the Euro.

Suggested Citation

  • Adediran, Idris & Salisu, Afees & Ogbonna, Ahamuefula E, 2020. "To “ECO” or not to “ECO”? Evidence for the single currency agenda of ECOWAS," MPRA Paper 109680, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:109680
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    ECOWAS; Fractional Cointegration; Single Currency;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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