Publication Type
Journal Article
Version
publishedVersion
Publication Date
12-2003
Abstract
In this paper we explore an alternative scheme to assess the suitability of adopting a common currency by Western European countries. It is based on the role of common regional shocks in the determination of output. The results show that the OCA theory well explains and predicts participation decisions in EMU. We also find that our OCA index is highly consistent with two popular schemes that have been introduced by Bayoumi and Eichengreen.
Keywords
Optimum currency area, Alternative index, Regional shocks vs. Country-specific shocks, EMU participation
Discipline
Macroeconomics
Research Areas
Macroeconomics
Publication
Economics Letters
Volume
81
Issue
3
First Page
297
Last Page
304
ISSN
0165-1765
Identifier
10.1016/s0165-1765(03)00196-4
Publisher
Elsevier
Citation
KIM, Yoonbai and CHOW, Hwee Kwan.
Optimum Currency Area in Europe: An Alternative Evaluation. (2003). Economics Letters. 81, (3), 297-304.
Available at: https://ink.library.smu.edu.sg/soe_research/180
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/s0165-1765(03)00196-4