@workingpaper{Asongu2015b_29,
title = {A Literature Survey on Proposed African Monetary Unions},
author = {Jacinta Nwachukwu & Vanessa Tchamyou C S Simplice A. Asongu},
editor = {African 2015 Governance and Development Institute WP/15/042},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/A-Literature-Survey-on-Proposed-African-Monetary-Unions.pdf},
year = {2015},
date = {2015-06-01},
abstract = {This study provides a survey of recent advances in the literature on proposed African
monetary unions. The survey comprises about 60 empirical papers published during the past
fifteen years. Four main strands are discussed individually and collectively, notably, the
proposed: West African Monetary Zone (WAMZ), East African Monetary Union (EAMU),
Southern African Monetary Union (SAMU) and African Monetary Union (AMU). We
observe a number of issues with establishing the feasibility and/or desirability of potential
monetary unions, inter alia, variations in: choice of variables, empirical strategies, sampled
countries and considered periodicities. We address this ambiguity by reviewing studies with
scenarios that are consistent with Hegelian dialectics and establish selective expansion as the
predominant mode of monetary integration. Some proponents make cases for strong pegs and
institutions as viable alternatives to currency unions. Using cluster analysis, disaggregating
panels into sub-samples and distinguishing shocks from responses in the examination of
business cycle synchronisation provide more subtle policy implications. We caution that for
inquiries using the same theoretical underpinnings, variables and methods just by modifying
the scope/context and periodicity may only contribute to increasing the number of conflicting
findings. Authors should place more emphasis on new perspectives and approaches based on
caveats of, and lessons from the European Monetary Union (EMU) and CFA zones.},
keywords = {Currency Area; Policy Coordination; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}