Elgar original reference
Edited by Jan Toporowski and Jo Michell
Chapter 19: The Franc Zone
The Franc Zone consists of fourteen countries in Africa together with the Islamic Federal Republic of the Comoros, who use a currency that was on a currency board with the French Franc, and now with the Euro. The guarantee of convertibility at a fixed rate against the French Franc, and now the Euro, has made those countries unique among developing countries in possessing a convertible currency, along with low inflation. Years before the development of optimal currency area theory, the Zone served as an example of how a monetary union could function, and the disadvantages of such monetary arrangements. However, it is not clear to what extent those disadvantages are consequences of the specific arrangements of the Zone, as opposed to being features of all monetary unions, or to what extent those undesirable features are the effects of other circumstances specific to the countries concerned.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.