Download or read book A Common Monetary Union for East Africa? Empirical Stress Tests Based on the Taylor Rule Approach written by Federico De Ponte and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Monetary Unions promote trade by lowering transaction costs and project stability in the global community. The East African Community (EAC), therefore, plans to elevate its cooperation to the next level, by establishing the East African Monetary Union (EAMU) by 2024. Nonetheless, Monetary Unions also present significant challenges and potential economic welfare losses. Hence, this paper seeks to provide valuable insights into the feasibility of the potential EAC Monetary Union by employing the Taylor Rate and Stress Tests. This method has been widely applied to, for example, the EURO area, but not yet to the EAC. The study's findings reveal notable convergence trends within the EAC throughout the past decades, thereby providing a more optimistic perspective on the viability of the EAMU compared to previous studies utilizing different approaches.