Abstract
The transition process has been accompanied by the emergence of numerous new countries seeking full independence, the most recent case being the separation between Montenegro and Serbia, as the former has adopted as its official currency the German mark, which has replaced the Yugoslav dinar, still circulating in Serbia. How has this change occurred? and what are the macroeconomic and institutional consequences of the disintegration of trade and currency ? After dealing with these questions, classical theories about customs unions and the optimum currency area are used to analyse this process. A recent development in the theory of monetary unions may better explain the present euro-isation of Montenegro. Accordingly, the adoption of an international currency by small countries strongly stimulates trade and growth.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
