RECENT APPROACHES IN THE OPTIMUM CURRENCY AREAS THEORY

This study is dealing with the endogenous characteristic of the OCA criteria, starting from the idea that a higherconformity of the business cycles will result in a better timing of the economic cycles and, thus, in getting closerto the quality of an optimum currency area. Thus, if the classical the...

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Main Authors: AURA SOCOL, CRISTIAN SOCOL
Format: Article
Language:English
Published: Nicolae Titulescu University Publishing House 2011-04-01
Series:Challenges of the Knowledge Society
Subjects:
Online Access:http://cks.univnt.ro/uploads/cks_2011_articles/index.php?dir=02_economy%2F&download=cks_2011_economy_art_036.pdf
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author AURA SOCOL
CRISTIAN SOCOL
author_facet AURA SOCOL
CRISTIAN SOCOL
author_sort AURA SOCOL
collection DOAJ
description This study is dealing with the endogenous characteristic of the OCA criteria, starting from the idea that a higherconformity of the business cycles will result in a better timing of the economic cycles and, thus, in getting closerto the quality of an optimum currency area. Thus, if the classical theory is focused on a static approach of theproblem, the new theories assert that these conditions are dynamic, and they cannot be positively affected evenby the establishment of the Economic and Monetary Union. The consequences are overwhelming, as theendogenous approach shows that a monetary union can be achieved even if all the conditions mentioned inMundell’s optimum currency areas theory are not met, showing that some of them may also be met subsequentto the unification. Thus, a country joining a monetary union, althogh it does not meet the criteria for an optimumcurrency area, will ex post lead to the increase of the integration and business cycle correlation degree.
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institution DOAJ
issn 2068-7796
language English
publishDate 2011-04-01
publisher Nicolae Titulescu University Publishing House
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series Challenges of the Knowledge Society
spelling doaj-art-2e9f7d2e17e74b3fa14b4ef01be0eabc2025-08-20T02:57:57ZengNicolae Titulescu University Publishing HouseChallenges of the Knowledge Society2068-77962011-04-011-11691178RECENT APPROACHES IN THE OPTIMUM CURRENCY AREAS THEORYAURA SOCOLCRISTIAN SOCOLThis study is dealing with the endogenous characteristic of the OCA criteria, starting from the idea that a higherconformity of the business cycles will result in a better timing of the economic cycles and, thus, in getting closerto the quality of an optimum currency area. Thus, if the classical theory is focused on a static approach of theproblem, the new theories assert that these conditions are dynamic, and they cannot be positively affected evenby the establishment of the Economic and Monetary Union. The consequences are overwhelming, as theendogenous approach shows that a monetary union can be achieved even if all the conditions mentioned inMundell’s optimum currency areas theory are not met, showing that some of them may also be met subsequentto the unification. Thus, a country joining a monetary union, althogh it does not meet the criteria for an optimumcurrency area, will ex post lead to the increase of the integration and business cycle correlation degree.http://cks.univnt.ro/uploads/cks_2011_articles/index.php?dir=02_economy%2F&download=cks_2011_economy_art_036.pdfoptimum currency area theoryendogeneity theoryOCA characteristics
spellingShingle AURA SOCOL
CRISTIAN SOCOL
RECENT APPROACHES IN THE OPTIMUM CURRENCY AREAS THEORY
Challenges of the Knowledge Society
optimum currency area theory
endogeneity theory
OCA characteristics
title RECENT APPROACHES IN THE OPTIMUM CURRENCY AREAS THEORY
title_full RECENT APPROACHES IN THE OPTIMUM CURRENCY AREAS THEORY
title_fullStr RECENT APPROACHES IN THE OPTIMUM CURRENCY AREAS THEORY
title_full_unstemmed RECENT APPROACHES IN THE OPTIMUM CURRENCY AREAS THEORY
title_short RECENT APPROACHES IN THE OPTIMUM CURRENCY AREAS THEORY
title_sort recent approaches in the optimum currency areas theory
topic optimum currency area theory
endogeneity theory
OCA characteristics
url http://cks.univnt.ro/uploads/cks_2011_articles/index.php?dir=02_economy%2F&download=cks_2011_economy_art_036.pdf
work_keys_str_mv AT aurasocol recentapproachesintheoptimumcurrencyareastheory
AT cristiansocol recentapproachesintheoptimumcurrencyareastheory