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Optimum Currency Areas Theory: Economic Foundation for Monetary Unification

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  • Voinea Gheorghe

    (“Alexandru Ioan Cuza” University of Iasi)

  • Avãdanei Andreea

    ()
    („Alexandru Ioan Cuza” University of Iasi, Doctoral School of Economics)

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    Abstract

    The aim of the present paper is to highlight the optimum currency areas (OCAs) theory contribution to the development of European monetary unification. In order to point out its implications, we structured our research on two parts. The first one illustrates the main achievements and limits of monetary cooperation at European level and the second analyses OCA theory’s influence on Economic and Monetary Union (EMU). We conclude by saying that this theory could not provide a clear answer about the optimality degree of EU as currency area. We also consider the European model as a laboratory test of OCA proprieties defined by Mundell, McKinnon and Kenen.

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    Bibliographic Info

    Article provided by Ovidius University of Constantza, Faculty of Economic Sciences in its journal Ovidius University Annals, Economic Sciences Series.

    Volume (Year): XI (2011)
    Issue (Month): 1 (May)
    Pages: 2315-2320

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    Handle: RePEc:ovi:oviste:v:11:y:2011:i:1:p:2315-2320

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    Web page: http://www.univ-ovidius.ro/facultatea-de-stiinte-economice
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    Keywords: Economic and Monetary Union; optimum currency area; single market; common currency.;

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