Central banking in a regional economic setting: Possible contributions to integration.

Heinrich, Gregor (2007): Central banking in a regional economic setting: Possible contributions to integration.

Abstract

Central banks can play an important role in facilitating and promoting regional economic and monetary integration. Examples are the European monetary union and a more recent initiative by a group of Asian central banks to boost liquidity in local bond markets in Asia through the “Asian Bond Fund 2”. This paper highlights the role of central banks in these efforts and points to issues that could be of relevance for the ongoing integration process in the Caribbean. It argues that the creation of a single currency area was based on a lengthy process, that economic integration came before monetary union, and that it required a strong degree of political determination; furthermore, integration is also assisted by the building of institutions and ongoing cooperation and dialogue among relevant authorities.

• Item Type: MPRA Paper
• Language: English
• Keywords: Caribbean, integration, Asian Bond Fund, currency area, CARICOM, European Monetary Union, institutions
• Subjects: E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E42 - Monetary Systems ; Standards ; Regimes ; Government and the Monetary System ; Payment Systems; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies; F - International Economics > F0 - General > F02 - International Economic Order and Integration; F - International Economics > F1 - Trade > F15 - Economic Integration; F - International Economics > F3 - International Finance > F33 - International Monetary Arrangements and Institutions; N - Economic History > N1 - Macroeconomics and Monetary Economics ; Industrial Structure ; Growth ; Fluctuations > N16 - Latin America ; Caribbean; N - Economic History > N2 - Financial Markets and Institutions > N25 - Asia including Middle East; N - Economic History > N2 - Financial Markets and Institutions > N26 - Latin America ; Caribbean

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