(hat tip Pedro da Costa @pdacosta)
"The leaders of five East African countries signed a protocol on Saturday laying the groundwork for a monetary union within 10 years that they expect will expand regional trade."
"In a monetary union, the absence of currency risk provides a greater incentive to trade" [they claim*]
"Adjusting to a single monetary and exchange rate policy is an inescapable feature of monetary union ... but this will take time and may be painful for some," [a rube, ... er 'spokesman'] said, referring to the fact that some countries may struggle to meet agreed benchmarks.
***
Deja vu? Corrupt Neo-Liberals in corrupt countries perceive familiarity as a positive? Does pegging allowable looting levels to "banking stability" constitute a felony yet?
*Standard disclaimers apply. Euro experiences may diverge from the claims made in advance. See your local 1% for protection racket access.
3 comments:
The resource boom going on in Africa is shaping up to be multiples larger than the massive boom in Australia.
Duct taping these countries together in a currency union will be an utter catastrophe as they contend with capital flows and rapid development and cheap credit with weak, often corrupt government institutions.
corrupt government institutions
Always one of the major problems both in the developed and emerging world.
Economists other than development economists tend to ignore the effect of corruption.
The stakeholders couldn't possibly be considering this stupidity unless the spectrum of "advice" is weighted towards the looting vs development side.
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