Discuss the main criteria that should be considered


Problem

In 2002, the economic news reported that a group of six countries, formed by Saudi Arabia, Bahrain, the United Arab Emirates, Kuwait, Oman, and Qatar, were considering the creation of a single currency. At that time, all cited countries maintained a parity exchange rate regime with the American dollar. Their economic activity depended mainly on oil exports to the rest of the world, hence the diversification of growth and international trade sources are a recurrent concern among their political leaders. Based on this information, discuss the main criteria that should be considered by these countries to whether they should implement a common currency. What would be the main advantages of a policy of this type? What would be the main disadvantages?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Discuss the main criteria that should be considered
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