Political secession, desintegration of trade and euro-isation of countriesundergoing transition: the case of Montenegro

Authors
Citation
G. Duchene, Political secession, desintegration of trade and euro-isation of countriesundergoing transition: the case of Montenegro, REV ET COMP, 31(4), 2000, pp. 57-98
Citations number
29
Language
FRANCESE
art.tipo
Article
Categorie Soggetti
Economics
Journal title
REVUE D ETUDES COMPARATIVES EST-OUEST
ISSN journal
0338-0599 → ACNP
Volume
31
Issue
4
Year of publication
2000
Pages
57 - 98
Database
ISI
SICI code
0338-0599(200012)31:4<57:PSDOTA>2.0.ZU;2-L
Abstract
The transition process has been accompanied by the emergence of numerous ne w countries seeking full independence, the most recent case being the separ ation between Montenegro and Serbia, as the former has adopted as its offic ial currency the German mark, which has replaced the Yugoslav dinar, still circulating in Serbia. How has this change occurred? and what are the macro economic and institutional consequences of the disintegration of trade and currency ? After dealing with these questions, classical theories about cus toms unions and the optimum currency area are used to analyse this process. A recent development in the theory of monetary unions may better explain t he present euro-isation of Montenegro. Accordingly, the adoption of an inte rnational currency by small countries strongly stimulates trade and growth.