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Optimum currency area theory: A selective review

  • Julius Horvath

    (Professor & Chair Department of International Relations & European Studies Central European University Budapest)

The first part of this paper is a review of significant papers in the vast literature on optimum currency area (OCA) theory. The author focuses on the main classical contributions, then considers modern treatment of OCA theory. The second part considers empirical literature on the types of geographical areas that might constitute optimum currency areas, particularly with respect to asymmetry and symmetry of shocks.

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File URL: http://econwpa.repec.org/eps/mac/papers/0401/0401014.pdf
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Paper provided by EconWPA in its series Macroeconomics with number 0401014.

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Length: 42 pages
Date of creation: 30 Jan 2004
Date of revision:
Handle: RePEc:wpa:wuwpma:0401014
Note: Type of Document - pdf; pages: 42; figures: included
Contact details of provider: Web page: http://econwpa.repec.org

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  6. Fidrmuc, Jan & Horvath, Julius & Fidrmuc, Jarko, 1999. "Stability of Monetary Unions: Lessons from the Break-up of Czechoslovakia," Transition Economics Series 10, Institute for Advanced Studies.
  7. Eichengreen, Barry & Bayoumi, Tamim, 1996. "Ever Closer to Heaven? An Optimum-Currency-Area Index for European Countries," Center for International and Development Economics Research, Working Paper Series qt5dt9501s, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
  8. Robert P Flood & Joshua Aizenman, 1992. "A Theory of Optimum Currency Areas; Revisited," IMF Working Papers 92/39, International Monetary Fund.
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  29. Baxter, Marianne & Stockman, Alan C., 1989. "Business cycles and the exchange-rate regime : Some international evidence," Journal of Monetary Economics, Elsevier, vol. 23(3), pages 377-400, May.
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  34. Canzoneri, Matthew B & Rogers, Carol Ann, 1990. "Is the European Community an Optimal Currency Area? Optimal Taxation versus the Cost of Multiple Currencies," American Economic Review, American Economic Association, vol. 80(3), pages 419-33, June.
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