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Is Brexit Really Supported? A View of Optimal Currency Area

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  • Quah, Chee-Heong
  • Ho, Yew Joe

Abstract

The Optimal Currency Area (OCA) theory is utilized to evaluate if Brexit is supported in the context of economic integration. In brief, the greater the conformity to the criteria motivated by the OCA model, the greater the feasibility of a monetary integration between the UK and the EU. Logically, if conditions are conducive for a monetary integration, Brexit – which is a disintegration – is thus unsupported. On the other hand, if circumstances are unfavourable for monetary integration, further economic integration with the current customs union of the EU is not indicated, hence Brexit is not contradicted.

Suggested Citation

  • Quah, Chee-Heong & Ho, Yew Joe, 2025. "Is Brexit Really Supported? A View of Optimal Currency Area," European Review, Cambridge University Press, vol. 33(2), pages 155-174, April.
    • Handle: RePEc:cup:eurrev:v:33:y:2025:i:2:p:155-174_2
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