Title

Optimum Currency Area in Europe: An Alternative Evaluation

Publication Type

Journal Article

Publication Date

2003

Abstract

n 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

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://dx.doi.org/10.1016/s0165-1765(03)00196-4

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