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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Nicolae Titulescu University Publishing House
2011-04-01
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| Series: | Challenges of the Knowledge Society |
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| 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. |
| format | Article |
| id | doaj-art-2e9f7d2e17e74b3fa14b4ef01be0eabc |
| institution | DOAJ |
| issn | 2068-7796 |
| language | English |
| publishDate | 2011-04-01 |
| publisher | Nicolae Titulescu University Publishing House |
| record_format | Article |
| 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 |