Viale, Ariel M.; Kolari, James W.; Hovanov, Nikolai V.; … - In: Journal of Applied Economics XI (2008) May, pp. 193-220
This paper develops a stable common currency for mid-sized open monetary economies with incomplete markets in general and the Mercosur countries in particular. The proposed currency is constructed as a derivative of a dynamic portfolio of securities that proxies the nominal exchange risk factors...