Prerequisites for African Monetary Unions in the 21st Century

Prof. Paul R. Masson
Weatherstone Consulting

 

Abstract

Successive euro zone crises suggest a need for a re-evaluation of currency union projects in Africa. I argue in related research (Masson, 2015) that the requirements for a sustainable monetary union are not adequately captured by the optimum currency area (OCA) and macroeconomic convergence criteria (or Maastricht criteria) which are given the most attention in plans for African monetary unions. Instead, the prerequisites for a successful monetary union require strong regional solidarity based on common approaches to policymaking that permit the creation of effective community institutions across a wide array of policy areas.Download the full article