The Future of the CEMAC CFA Franc

In the event of common shocks, the result for both countries appears to be that a higher G favours monetary autonomy over a currency union, with the exception of Case B

• Proposition 1 : if a monetary union is established between two countries with different productivity lev- els, and if convergence of price levels takes place as a consequence of

After they started using Euro as the common currency in European Union, the member countries left all their rights regarding the monetary policy at the unity level..

As one of the most striking real-world examples of a monetary union project that could be threatened by external shocks, we deliver a rel- atively pessimistic assessment of