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Sergio Da Silva, Leandro Stocco and J. Anchieta Neves
''Is Mercosur an optimum currency area? An assessment using generalized purchasing power parity''
( 2008, Vol. 6 No.29 )
We consider the cointegration approach of generalized purchasing power parity to show that a necessary condition for Mercosur to be an optimum currency area is met. Yet there are still large cross-country differences as to cast doubt on the success of either monetary union or official dollarization. The PPP puzzle is also found to occur in Mercosur.
JEL: F3 - International Finance: General
Manuscript Received : Jun 06 2008 Manuscript Accepted : Jul 23 2008

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