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Currency unions mean more trade, but not for everyone

Natalie Chen, Dennis Novy, (2018), “Currency unions mean more trade, but not for everyone”, VoxEU, 9 July

Currency unions are an important institutional arrangement to facilitate international trade and reduce trade costs. In the period since WWII, a total of 123 countries have been involved in a currency union at some point. By the year 2015, 83 countries continued to be involved in one. In addition, various countries are considering forming new currency unions or to join existing ones. For example, the East African Community is thinking about setting up a common currency. Also, Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, and Sweden are supposed to join the euro at some point.

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