Global Journal of Business Management

Global Journal of Business Management ISSN 2736-1721 Vol. 17 (7), July, 2023. © International Scholars Journals

Full Length Research Paper

Can Eastern African Monetary Union Become a successful OCA? Comparisons with the Euro zone case

Dimitrios  Dapontas

E-mail: [email protected] 

Accepted 31 July 2015

Abstract

As long as the Eastern African Monetary Union (EAMU) is on its way debate on its fruition raises under the economic turbulence caused by Euro’s non performance after only 16 years of existence. Using Monga’s (1997) model on whether a monetary union is an OCA or not modified for the EAC we currently deploy eleven equal indicators checking the synchronization and symmetry of the future East African Shilling. The results show that under the existing conditions of both participants and the community in contrast to the European one a common currency can format an Optimum Currency Area effecting positively all current and future members.

Keywords: Optimum Currency Area,Symmetries,Developing economies,Economic freedom. 

JEL Classification: E 42, E 52, F 41.