Essay on Establishing Conversion Values for the Planned Gulf Cooperation Council (GCC) Currency Union
Damyana Bakardzhieva (),
Russell Krueger,
Bassem Kamar () and
Jean-Etienne Carlotti
No 632, Working Papers from Economic Research Forum
Abstract:
A key issue in creating a new currency union is setting the rates to convert national currencies into the new union currency. We propose a forward-looking econometric methodology to determine conversion rates in the planned GCC currency union by calculating the degree of misalignment in the real exchange rate. For each GCC currency, we first identify the year at which the economy is the closest to its internal and external equilibrium, and then estimate the degree of misalignment in the bilateral real exchange rate vis-à-vis the U.S. dollar, based on WEO forecasts until 2013.Our calculations suggest that there is no need to adjust the actual rates to establish the conversion, as the forecasted misalignments are minor (less than 5%).
Pages: 31
Date: 2011-01-09, Revised 2011-01-09
References: View references in EconPapers View complete reference list from CitEc
Citations:
Published by The Economic Research Forum (ERF)
Downloads: (external link)
http://erf.org.eg/wp-content/uploads/2014/08/632.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://erf.org.eg/wp-content/uploads/2014/08/632.pdf [301 Moved Permanently]--> https://erf.org.eg/wp-content/uploads/2014/08/632.pdf)
http://bit.ly/2mJOrAE (text/html)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:erg:wpaper:632
Access Statistics for this paper
More papers in Working Papers from Economic Research Forum Contact information at EDIRC.
Bibliographic data for series maintained by Namees Nabeel ().