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The Significance of Common Currency to the Success of Economic IntegrationOladele OmosegbonProfessor of EconomicsDeVoe School of BusinessIndiana Wesleyan University1900 West 50thStreetMarion, Indiana 46953-9393317-450-0993/765-677-1464 FAX[email protected]Session:Allied Social Sciences Association- National Economic Association Annual Conference inPhiladelphia, January 4-7, 2018
1The Significance of Common Currency to the Success of Economic IntegrationOladele Omosegbon**AbstractThe Economic Community of West African States, as one of the regional economic communitiesin Africa, has been struggling with the creation of a common currency since 2003, when the Ecowas scheduled to circulate. But common currency is a necessary condition for an economiccommunity to exist. Without economic union, Africans have been in currency unions before. Theascendancy of ECOWAS in the world stage and the main path to avoid a stunted development,revealed in its logistic population growth, is going to depend on the size of its economy and inthe use of a common currency.JEL: F15, F21, F33 and F45**Oladele Omosegbon, DeVoe School of Business, Indiana Wesleyan University, at the AlliedSocial Sciences Association- National Economic Association Annual Conference inPhiladelphia, January 4-7, 2018
2The Significance of Common Currency to the Success of Economic IntegrationRegional economic communities, RECs, in Africa, have been struggling with the creationof common currencies since their inceptions. For the Economic Community of West AfricanStates, ECOWAS, the struggle commenced since 2003, when the Eco was scheduled to circulate.We have witnessed several postponements since then, the latest being from the set date of 2015to 2020. All agents desire a developed, prosperous and united Africa. But if asked about using acommon currency, many decision makers run into uncertainties and ambiguities. For manypolicy makers, the decision of whether to accept a common currency is a big irritation and anembarrassing nuisance.Academics tend to be intellectually dishonest about the importance of money in aneconomic community. On the one hand, some display remarkable niceties and dexterity via, forinstance, the optimal currency area research, of the near impossibility and incongruence of acommon currency in most African RECs Ekong and Onye (2012). On the other hand, others,Feenstra (2014), Feldstein (2008) are quick to go into the exegesis of economic integration in,stating, inter alia, that economic unions tend to ensure the free flow of human and materialresources among cooperating nations, and hence, countries uniting tend to benefit. But this isintellectually dishonest, because only when common money is instituted can there be the kind ofbenefits everyone is talking about regarding economic union and cooperation among nations.

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Term
Summer
Professor
Du Preez
Tags
European Union, African Union, economic union, ECOWAS, African Economic Community

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