Project on Macroeconomic and Financial Stability in Developing Economies: Economic Integration in Central America

Though not working towards an imminent transition to a monetary or currency union, the Central American Monetary Council (or CMCA, from Spanish Consejo Monetario Centroamericano) serves as an institution promoting economic and financial stability among five Central American countries (Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua) and the Dominican Republic. We expand the study of inflation stability in the member countries of the CMCA by adopting a long memory and fractionally integrated approach and implementing cointegration methods that have not yet been used in the context of the Central American Monetary Council.


This project is led by Prof. Luis A. Gil-Alaña.