Endogénéité des critères d'une zone monétaire optimale: un réexamen
[Endogeneity of the optimum currency area criteria: a re-examination]
AbstractIn the context of the theory of the optimum currency areas, Frankel and Rose  have proposed the endogeneity thesis of the optimality criteria which they demonstrate by highlighting a significantly positive relation between business cycles synchronization and trade intensity of the monetary union countries. This demonstration admits limits and can lead to erroneous conclusions. It hides an important dimension of the endogeneity of the optimality criteria: the business cycles convergence. From the experience of three monetary unions, we first demonstrate that the endogeneity of the monetary unions can only and rigorously be verified afterwards. We demonstrate secondly that, in addition to a positive relation between business cycles synchronization and trade integration, a cyclical convergence of the economies over the period prior to the monetary union would make the thesis of endogeneity more plausible.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 46727.
Date of creation: May 2013
Date of revision:
Optimum currency area; Cyclical convergence; Trade integration; Asymmetric shocks;
Find related papers by JEL classification:
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- F15 - International Economics - - Trade - - - Economic Integration
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
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