Case Selection and Data

Abstract

The following case studies take a closer look at economic and monetary characteristics of the respective regions to analyze the specific regional conditions that contribute to or hinder exchange rate stabilization and financial market development. In particular, the case studies address the question of how region-specific constellations of country characteristics, heterogeneity of member countries, and regional conditions affect the exchange rate stabilizing potential of SSC. The comparative case studies are framed by a brief introduction to the historical and economic conditions of regional monetary cooperation in each region; furthermore, the case studies explore regional macroeconomic stability by examining the member countries’ macroeconomic characteristics with regard to monetary policy constraints, exchange rate stability (cf. Chapter 3), and financial market development (cf. Chapter 4). The case studies specifically aim at identifying regional circumstances that hinder or support exchange rate stabilization and financial market development in regional monetary cooperation compared with non-cooperation.