Monetary integration in South America: Elección of candidates through unsupervised machine learning
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Published:2022-06-16
Issue:61
Volume:
Page:63-89
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ISSN:1576-0162
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Container-title:Revista de Economía Mundial
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language:
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Short-container-title:REM
Author:
Padilla LeónORCID,
Marín Eduardo
Abstract
Applying Unsupervised Machine Learning techniques to a set of nominal variables (based on the optimum currency area [OCA] theory and the Maastricht Treaty criteria) and industrial indicators (based on similar production patterns), this paper aims to identify potential candidates for a monetary integration in South America (SA). The main conclusion is that, according to the clustering of the nominal and industrial indicators, the countries in best position for a hypothetical monetary integration in SA are Chile, Colombia, and Perú (and Ecuador to a lesser extent); countries that are generally members of the same cluster. This group of economies, which belong to the Pacific Alliance, are in a better position to meet various criteria for regional monetary integration, such as nominal convergence and similar production patterns.
Publisher
Universidad de Huelva - UHU
Subject
Economics and Econometrics,History,Social Sciences (miscellaneous),Geography, Planning and Development,Transportation,Political Science and International Relations