What is European Economic and Monetary Union Telling Us About the Properties of Optimum Currency Areas?

29 Pages Posted: 13 Sep 2005

See all articles by Francesco Paolo Mongelli

Francesco Paolo Mongelli

European Central Bank (ECB); Goethe University Frankfurt

Abstract

Our understanding of optimum currency area (OCA) properties has changed over time. While all properties can now be discussed in detail, the challenge of weighing and reconciling them remains. Looking ahead, we may be confronted with two distinct paradigms: specialization versus 'endogeneity of OCA' that may give rise to a paradox if taken to the extreme. The merits of OCA theory as an organizing device and a research catalyst are underlined, but its limitations are also revealed. Also noted here is the complementarity between empirical studies of OCA properties and progress toward EMU.

Suggested Citation

Mongelli, Francesco Paolo, What is European Economic and Monetary Union Telling Us About the Properties of Optimum Currency Areas?. Journal of Common Market Studies, Vol. 43, No. 3, pp. 607-635, September 2005, Available at SSRN: https://ssrn.com/abstract=786108

Francesco Paolo Mongelli (Contact Author)

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Goethe University Frankfurt ( email )

Gr├╝neburgplatz 1
Frankfurt am Main, 60323
Germany

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