Assessing The Endogeneity Of Oca Conditions In Emu
AbstractThe academic and political discussion about which countries met the conditions for joining EMU was decisively influenced by the Frankel and Rose (1997) hypothesis concerning endogenous OCA properties. The answer to their question "Is EMU more justifiable ex post than ex ante?" was a definite yes in their ex ante analysis. Our ex post examination of the euro's first decade, however suggests that the hypothesis does not hold for some countries. This paper utilizes panel data estimation techniques to compute OCA indices that help assess the OCA endogeneity hypothesis and signal current external and fiscal imbalances.
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Bibliographic InfoPaper provided by Gabinete de Estratégia e Estudos, Ministério da Economia e da Inovação in its series GEE Papers with number 0042.
Length: 15 pages
Date of creation: Nov 2011
Date of revision: Nov 2011
optimum currency areas; OCA index; monetary union;
Other versions of this item:
- Carlos Vieira & Isabel Vieira, 2012. "Assessing The Endogeneity Of Oca Conditions In Emu," Manchester School, University of Manchester, vol. 80, pages 77-91, 09.
- Carlos Vieira & Isabel Vieira, 2011. "Assessing the Endogeneity of OCA Conditions in EMU," CEFAGE-UE Working Papers 2011_01, University of Evora, CEFAGE-UE (Portugal).
- F15 - International Economics - - Trade - - - Economic Integration
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-21 (All new papers)
- NEP-CBA-2011-11-21 (Central Banking)
- NEP-EEC-2011-11-21 (European Economics)
- NEP-MON-2011-11-21 (Monetary Economics)
- NEP-OPM-2011-11-21 (Open Economy Macroeconomic)
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