Leiden University Student Repository

Wieren, Floris van (2018)

Currency Unions in Latin America

Bachelor thesis | International Studies (BA)

Since the creation of the European monetary union, countries across the globe have been wondering whether or not they too should form a monetary union. This thesis will examine to what extent it is a good idea for four Latin American countries to form a monetary union. The countries in question are Colombia, Chile, Peru and Brazil. These countries have been chosen because similar to the EMU, they share similar characteristics that are essential for the formation of a monetary union. This thesis will look a key questions regarding whether or not these countries should do it, if it’s optimal and if they can form an optimal currency area. To answer these questions, this thesis will look at macroeconomic variables including inflation and government debt. The combination of academic sources and hard economic data will ensure that the question can be answered in a clear and consistent manner. At the end of this thesis there will be a general conclusion whether or not these countries...Show moreSince the creation of the European monetary union, countries across the globe have been wondering whether or not they too should form a monetary union. This thesis will examine to what extent it is a good idea for four Latin American countries to form a monetary union. The countries in question are Colombia, Chile, Peru and Brazil. These countries have been chosen because similar to the EMU, they share similar characteristics that are essential for the formation of a monetary union. This thesis will look a key questions regarding whether or not these countries should do it, if it’s optimal and if they can form an optimal currency area. To answer these questions, this thesis will look at macroeconomic variables including inflation and government debt. The combination of academic sources and hard economic data will ensure that the question can be answered in a clear and consistent manner. At the end of this thesis there will be a general conclusion whether or not these countries should form a monetary union and if this can become optimal.Show less

Monetary Union

Latin America

Chile

Colombia

Peru

Brazil

Monetary Policy

Optimal Currency Area

Author

Wieren, Floris van

Faculty

Faculty of Humanities

Specialisation

BA Latin America

Supervisors

Amann, Edmund

ECTS Credits

15

Language

en