Stability of monetary unions: Lessons from the break-up of Czechoslovakia

Arbeitspapier

In 1993, Czechoslovakia experienced a two-step break-up. On January 1, the country disintegrated as a political union, while preserving an economic and monetary union. Then, the Czech-Slovak monetary union collapsed on February 8. This paper analyzes the economic background of the two break-ups from the perspective of the optimum currency area literature. The main finding is that the Czech and Slovak economies were vulnerable to asymmetric economic shocks, such as those induced by the economic transition. In particular, the stability of Czechoslovakia was undermined by low correlation of permanent output shocks, low labor mobility and higher concentration of heavy and military industries in Slovakia.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ZEI Working Paper ; No. B 17-1999

Klassifikation und Themen

• Klassifikation: Wirtschaft ; International Monetary Arrangements and Institutions ; Financial Aspects of Economic Integration ; International Policy Coordination and Transmission
• Thema: Optimum currency areas ; Disintegration ; Czechoslovakia

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Fidrmuc, Jan ; Horvath, Julius ; Fidrmuc, Jarko
• Ereignis: Veröffentlichung
• (wer): Rheinische Friedrich-Wilhelms-Universität Bonn, Zentrum für Europäische Integrationsforschung (ZEI)
• (wo): Bonn
• (wann): 1999

Weitere Informationen

• Handle: http://hdl.handle.net/10419/39553
• Letzte Aktualisierung: 20.09.2024, 08:25 MESZ