Monetary Integration in the Eurasian Economic Union: What are the Issues?

Marina Hamilton & Graham Bird

Published: September 2019

The members of the Eurasian Economic Union (EEU) are continuing to discuss establishing a currency union. Do the characteristics of the EEU economies meet the criteria identified by optimum currency area theory, covering fiscal convergence, exchange rate stability, the symmetry of shocks, the dispersion of inflation and interest rates, and the synchronization of business cycles? This article suggests that the empirical evidence is nuanced. The gains and losses from monetary integration in the EEU would not be equally distributed across member states. As has been the case with the Eurozone, the future prospects for monetary integration in the EEU depend very much on political factors.

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