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Optimum Currency Areas Theory: Economic Foundation for Monetary Unification


  • Voinea Gheorghe

    (“Alexandru Ioan Cuza” University of Iasi)

  • Avãdanei Andreea

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


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.

Suggested Citation

  • Voinea Gheorghe & Avãdanei Andreea, 2011. "Optimum Currency Areas Theory: Economic Foundation for Monetary Unification," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 2315-2320, May.
  • Handle: RePEc:ovi:oviste:v:11:y:2011:i:1:p:2315-2320

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    Economic and Monetary Union; optimum currency area; single market; common currency.;

    JEL classification:

    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets


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