Although entering currency (and customs) unions involve both costs and benefits, an increasing body of research is finding that the benefits-in terms of international trade creation-are remarkably large. Focusing simply on the European Monetary Union (EMU) rather than the broad range of currency...

Although entering a currency union involves both costs and benefits, an increasing body of research is finding that the benefits – in terms of international trade creation – are remarkably large. For example, Rose (2000) suggests that countries can up to triple their trade by joining a...