Optimum Currency Area Theory, Inter-Industry Labour Mobility, and Industrial Development Paths
The author considers the issue of inter-industry labour mobility in the theory of optimum currency areas (OCA) and analyses the explanatory and predictive power of Mundell´s and Kenen´s criteria when the phenomenon of monetary integration presents itself as a process of gradual incorporation of countries, and when monetary integration is accompanied by processes of industrial development with structural changes and patterns of convergence or divergence. He reaches the conclusion that OCA theory does not necessarily support gradualism in monetary integration and that, for a given set of countries and from a dynamic perspective, OCA theory does not necessarily produce time-consistent results.
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Volume (Year): 57 (2004)
Issue (Month): 4 ()
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