GCC Monetary Union and the Degree of Macroeconomic Policy Coordination /

Coordinating macroeconomic policies is a pre-requisite to a successful launch of the common currency in the GCC countries. Relying on the Behavioral Equilibrium Exchange Rate approach as a theoretical framework, we apply the Pooled Mean Group methodology to determine the similarity of the impact of...

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Glavni avtor: Kamar, Bassem
Drugi avtorji: Ben Naceur, Samy
Format: Revija
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 2007.
Serija:IMF Working Papers; Working Paper ; No. 2007/249
Online dostop:Full text available on IMF
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520 3 |a Coordinating macroeconomic policies is a pre-requisite to a successful launch of the common currency in the GCC countries. Relying on the Behavioral Equilibrium Exchange Rate approach as a theoretical framework, we apply the Pooled Mean Group methodology to determine the similarity of the impact of a selected set of macroeconomic indicators on the real exchange rate in each country. Our empirical evidence points to a clear coordination of monetary policy, fiscal policy, government consumption, and openness across the member countries. While RER misalignments also show a substantial convergence building over time, differences in the misalignments of the two polar cases remain rather substantial, calling for further coordination and policy harmonization. 
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700 1 |a Ben Naceur, Samy. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2007/249 
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