The fear of exclusion and public support for a multilateral monetary union
by Steven Buigut
International Journal of Monetary Economics and Finance (IJMEF), Vol. 3, No. 2, 2010

Abstract: Public attitude towards monetary union is influenced by a broad set of considerations; some well beyond the realm of economics. This paper investigates the public's fear of exclusion and its impact on their support for multilateral monetary union. Using survey data from the East African Community (EAC), it is shown that the public's support for multilateral monetary union is significantly greater when faced with a threat of exclusion than when no such threat exists. The level of education and the preference for monetary policy control are strong predictors of the fear of exclusion.

Online publication date: Tue, 26-Jan-2010

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