DP6254 Checking Out: Exits from Currency Unions
Author(s): | Andrew K Rose |
Publication Date: | April 2007 |
Keyword(s): | country, data, empirical, monetary, panel, probit, statistic |
JEL(s): | E42, E58 |
Programme Areas: | International Macroeconomics |
Link to this Page: | cepr.org/active/publications/discussion_papers/dp.php?dpno=6254 |
This paper studies the characteristics of departures from monetary unions. During the post-war period, almost seventy distinct countries or territories have left a currency union, while over sixty have remained continuously in currency unions. I compare countries leaving currency unions to those remaining within them, and find that leavers tend to be larger, richer, and more democratic; they also tend to have higher inflation. However, there are typically no sharp macroeconomic movements before, during, or after exits.