A Strategy to Achieve Macroeconomic Stability?

Abstract

In order to contribute to a systemized analytical framework for examining SSC beyond OCA, the “regime changing character” (Schelkle, 2001a: 327) of regional monetary cooperation needs to be addressed. Therefore, the research perspective needs to be changed by analyzing regional monetary cooperation as a possible policy strategy to mitigate policy constraints and enhance macroeconomic stability in southern economies with fragile financial markets, instead of focusing on allocation effects in turn for removing supposedly autonomous monetary policy tools (cf. Roy and Betz, 2000; see Chapter 5).