Question

Part A

In joining a monetary union, the group of country must adopt a common currency. What currency should we as a Region adopt? Present a case for the type of currency we should use in the Region, e.g. the US Dollar or create a community currency like the EC Dollar?

Part B

1. Outline the previous attempts by Caribbean countries at economic integration.
2. What is a monetary union? Discuss the advantages and drawbacks in forming such an arrangement.
3. What was the basis given for the formation of a Caribbean Monetary Union? What are the pros and cons of forming a monetary union specifically in the Caribbean?

Answer 1

PART A

ECO is the single trade currency and this currency is mainly applicable in case of the region adopt .There are different types of currency such as soft currency,hot currency ,heated currency and cheap currency and the kinds of currencies are Us dollar,euro ,japanese and yen

PART B

Monetary union is is an intergovernmental agreement that involves two or more states sharing the same currency. These states may not necessarily have any further integration such as an economic and monetary union, which would have, in addition, a customs union and a single market.

The Eastern Caribbean Currency Union is a development of the Organization of Eastern Caribbean States. This organization is composed of Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines. It is under the supervision of the Eastern Caribbean Central Bank. The member countries use a common currency