What is European Economic and Monetary Union Telling us About the Properties of Optimum Currency Areas?

Our understanding of optimum currency area (OCA) properties has changed over time. While all properties can now be discussed in detail, the challenge of weighing and reconciling them remains. Looking ahead, we may be confronted with two distinct paradigms: specialization versus ‘endogeneity of OCA’...

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Bibliographic Details
Published inJournal of common market studies Vol. 43; no. 3; pp. 607 - 635
Main Author MONGELLI, FRANCESCO PAOLO
Format Journal Article
LanguageEnglish
Published Oxford, UK Blackwell Publishing Ltd 01.09.2005
Wiley Blackwell
SeriesJournal of Common Market Studies
Subjects
Currency
European Monetary Union
Monetary policy
Studies
Europe
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Summary:Our understanding of optimum currency area (OCA) properties has changed over time. While all properties can now be discussed in detail, the challenge of weighing and reconciling them remains. Looking ahead, we may be confronted with two distinct paradigms: specialization versus ‘endogeneity of OCA’ that may give rise to a paradox if taken to the extreme. The merits of OCA theory as an organizing device and a research catalyst are underlined, but its limitations are also revealed. Also noted here is the complementarity between empirical studies of OCA properties and progress toward EMU.
Bibliography:ark:/67375/WNG-9ZCMJ1G6-4
istex:45CD6CDCAF0E8BAF97E34896954DD3FA32DD4F2A
For their comments I would like to thank George Tavlas, Ivo Maes, Mike Artis, Vítor Gaspar, Maria Demertzis, Jim Rollo, Ciro Schioppa, and participants in presentations at the 2002 Royal Economic Society Conference, the ECB and the J-W Goethe University. The views expressed are my own and do not necessarily reflect those of the ECB.
ArticleID:JCMS571
For their comments I would like to thank George Tavlas, Ivo Maes, Mike Artis, Vítor Gaspar, Maria Demertzis, Jim Rollo, Ciro Schioppa, and participants in presentations at the 2002 Royal Economic Society Conference, the ECB and the J‐W Goethe University. The views expressed are my own and do not necessarily reflect those of the ECB.
ObjectType-Article-2
SourceType-Scholarly Journals-1
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ISSN:0021-9886
1468-5965
DOI:10.1111/j.0021-9886.2005.00571.x