The objective of this note is to bring out the inconsistency in empirical estimation and conclusions that are derived in Maskay (2001). The estimation of the structural VAR model doesn't reject the over-identifying restrictions for all countries, as emphasized by Maskay (2001). The correlation coefficients of the supply shocks do show subsets of countries that can possibly form an OCA. The size and the speed of adjustment point out that any loss in policy independence may be negligible.
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