The premises and assumptions of monetary integration in Europe against the background of the theory of optimum currency area
The creation of the Economic and Monetary Union on the 1st January 1999 and the introduction of the common currency euro enlivened the discussion on the subject of the theory of optimum currency area and their practical applications. The opinions appeared that the countries of the euro zone do not fulfill the criteria of optimum currency area, and therefore the conducting of a uniform money policy and an irrevocably stiffening of the currency rates inside this area may considerably hinder the efficient functioning of the particular economies, especially in a situation of asymmetrical disturbances. This article presents against the background of the theories of international economic relations a historical outline of the process of economic integration in Europe. Moreover there are discussed criteria serving to evaluate the optimality of the currency area and also there are compiled the results of empirical research concerning the degree of fulfilling of these criteria by the Euroland countries. The conclusion of the article is the statement that within the euro zone there are economies to a different degree predestined to stiffen the rates of their currencies with respect to the euro and to resign from soverainty in the scope of money policy. The requirements of the optimum currency area are fulfilled to the largest degree by Germany, Austria and Belgium, to the least degree by Finland and Portugal, whereas the remaining countries of the Economic and Monetary Union are situated on intermediate position.
Volume (Year): 3 (2001)
Issue (Month): ()
|Contact details of provider:|| Postal: ul. Dluga 44/50, 00-241 Warszawa|
Phone: +48 +22 5549184
Fax: (+48 22) 831 28 46
Web page: http://www.wne.uw.edu.pl
More information through EDIRC
|Order Information:|| Web: http://ekonomia.wne.uw.edu.pl Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Glenn Hoggarth, 1996. "Introduction to Monetary Policy," Handbooks, Centre for Central Banking Studies, Bank of England, number 1.
- Bennett T. McCallum, 1999. "Theoretical Issues Pertaining to Monetary Unions," NBER Working Papers 7393, National Bureau of Economic Research, Inc.
- Alesina, Alberto & Wacziarg, Romain, 1999.
"Is Europe going too far?,"
Carnegie-Rochester Conference Series on Public Policy,
Elsevier, vol. 51(1), pages 1-42, December.
- Frankel, Jeffrey A & Rose, Andrew K, 1996.
"The Endogeneity of the Optimum Currency Area Criteria,"
CEPR Discussion Papers
1473, C.E.P.R. Discussion Papers.
- Frankel, Jeffrey A & Rose, Andrew K, 1998. "The Endogeneity of the Optimum Currency Area Criteria," Economic Journal, Royal Economic Society, vol. 108(449), pages 1009-1025, July.
- Jeffrey A. Frankel & Andrew K. Rose, 1996. "The Endogeneity of the Optimum Currency Area Criteria," NBER Working Papers 5700, National Bureau of Economic Research, Inc.
- Frederic S. Mishkin, 1995. "Symposium on the Monetary Transmission Mechanism," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 3-10, Fall.
- Maurice Obstfeld & Kenneth S. Rogoff, 1996. "Foundations of International Macroeconomics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262150476, September.
- Jeffrey A. Frankel, 1999. "No Single Currency Regime is Right for All Countries or At All Times," NBER Working Papers 7338, National Bureau of Economic Research, Inc.
- Stephen G. Cecchetti, 1999.
"Legal structure, financial structure, and the monetary policy transmission mechanism,"
Economic Policy Review,
Federal Reserve Bank of New York, issue Jul, pages 9-28.
- Stephen G. Cecchetti, 1999. "Legal Structure, Financial Structure, and the Monetary Policy Transmission Mechanism," NBER Working Papers 7151, National Bureau of Economic Research, Inc.
- Smaghi, L.B. & Area, C., 1993. "Rating the EC as an Optimal Currency Area," Papers 187, Banca Italia - Servizio di Studi.
- Angeloni, Ignazio & Dedola, Luca, 1999. "From the ERM to the euro: new evidence on economic and policy convergence among EU countries," Working Paper Series 0004, European Central Bank.
- Lafrance, Robert & St-Amant, Pierre, 1999. "Optimal Currency Areas: A Review of the Recent Literature," Staff Working Papers 99-16, Bank of Canada.
When requesting a correction, please mention this item's handle: RePEc:eko:ekoeko:3_41. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marta Höffner)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.