TY - JOUR
TI - A common currency for the East African community? Lessons from the introduction of the euro
AU - Bass, Hans-Heinrich
AU - Malovic, Marko
AU - Rwehumbiza, Deusdedit
TI - A common currency for the East African community? Lessons from the introduction of the euro
AB - 
	The paper analyses the feasibility of a common currency for the East African Community (EAC), which comprises Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda. The paper discusses theoretical insights on the benefits and costs of a common currency. It then uses the introduction of the common European currency, the euro, as a potential yardstick to assess the feasibility of a common currency in East Africa. The paper analyses the readiness of the EAC’s economies for a common currency as measured by relevant indicators. It concludes that some caveats are in order with regard to the feasibility of a common East African currency at the present point in time. It also warns that expectations of the development impact of a common currency should not be too high, as the example of the euro shows that the real outcome in terms of trade facilitation and consumer welfare is much lower than expected.
VL - 2018
IS - Volume 37
PY - 2018
SN - 2300-6102
C1 - 2353-9496
SP - 215
EP - 230
DO - 10.4467/23539496IB.18.015.9388
UR - https://ejournals.eu/en/journal/ibage/article/a-common-currency-for-the-east-african-community-lessons-from-the-introduction-of-the-euro
KW - regional integration
KW - monetary integration
KW - optimum currency area
KW - exchange rate regimes
KW - East Africa