Naslov
The Theory of Optimum Currency Areas : A Literature Review

Autori
Broz, Tanja

Izvornik
Privredna kretanja i ekonomska politika (1330-187X) 15 (2005), 104; 52-78

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, pregledni rad, znanstveni

Ključne riječi
optimum currency areas; monetary integration

Sažetak
This paper reviews some of the most important contributions to the theory of optimum currency areas. First part reviews traditional contributions, while second part reviews modern views on optimum currency areas theory. Even though many additional criteria are introduced in this modern phase, traditioal contributions are still relevant. Some of the most important criteria include labour mobility, price and wage flexibility, degree of openes, product diversification, inflation differentials, effectiveness of monetary policy, correlation and variation of shocks, character of shocks and political factors. If, for example, potential members of common curency area do have labour force that is mobile, sufficient price and wage flexibility, high degree of openess, similar inflation rates and have political will to abandon their own currency and adapt new one, than common monetary policy can be of benefit to all members and thus usefulness of nominal exchange rate adjustments within members is reduced.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA