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Monetary Unions and Endogeneity of the OCA Criteria


  • Hiroya Akiba
  • Yukihiro Iida


This article examines an endogeneity issue within the Optimum Currency Area (OCA) theory. According to the cost-benefit analysis, we found that there are the upper and the lower bounds in the degree of monetary integration for a monetary union to be created. We also found that a country may secede from the monetary union, depending on its degree of integration. A country may also secede when production specialization is facilitated with monetary integration within a framework of the “OCA line”. We also consider the endogeneity of the “OCA Index”, and applied our analysis to the optimum number of world currencies.

Suggested Citation

  • Hiroya Akiba & Yukihiro Iida, 2009. "Monetary Unions and Endogeneity of the OCA Criteria," Global Economic Review, Taylor & Francis Journals, vol. 38(1), pages 101-116.
  • Handle: RePEc:taf:glecrv:v:38:y:2009:i:1:p:101-116 DOI: 10.1080/12265080802692795

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    References listed on IDEAS

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    Cited by:

    1. Andrea Bonilla Bolanos, 2014. "External Vulnerabilities And Economic Integration: Is The Union Of South American Nations A Promising Project?," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(2), pages 97-131, June.
    2. Puiu, Cristina, 2010. "Endogenitatea criteriilor teoriei zonei monetare optime
      [The endogeneity of the optimum currency area criteria]
      ," MPRA Paper 28470, University Library of Munich, Germany.

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    Monetary Union; OCA; endogeneity;


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