The Optimum Currency Area. Is the Euro Zone an Optimum Currency Area?

Geza, Paula and Giurca Vasilescu, Laura (2011): The Optimum Currency Area. Is the Euro Zone an Optimum Currency Area?

Abstract

Although analyzed in terms of criteria for defining an optimum currency area, we could appreciate that EU fulfils certain criteria established within the theory of the optimum currency area. But in comparison with USA or Canada, the EU has less premises to effectively become such an area. The Economic and Monetary Union considered, from a certain point of view, the most ambitious and risky project of the European construction, is the result of a fundamental political decision within a powerful economic component. Despite the statute of sub-optimum currency area, there are still a series of arguments, both supportive and critical, for the settlement of an Economic and Monetary Union within the European space.

• Item Type: MPRA Paper
• Language: English
• Keywords: Optimum Currency Area, Monetary Integration, Currency, Economic and Monetary Union
• Subjects: E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E42 - Monetary Systems ; Standards ; Regimes ; Government and the Monetary System ; Payment Systems; F - International Economics > F3 - International Finance > F36 - Financial Aspects of Economic Integration

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