The Eurozone Vs. the Optimal Currency Area Theory - Survey of Their Theoretical Frameworks and Political Backgrounds
The Eurozone Vs. the Optimal Currency Area Theory - Survey of Their Theoretical Frameworks and Political Backgrounds

Author(s): Mikhail Raev
Subject(s): Politics / Political Sciences, Politics, Economy, Business Economy / Management, Political Theory, Political economy, EU-Accession / EU-DEvelopment, Financial Markets, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: Optimal Currency Area theory; Economic and Monetary Union
Summary/Abstract: The paper surveys the development of the Optimal Currency Area theory and the Economic and Monetary Union. After a close examination of how Robert Mundell arrived at the former theoretical framework and its further elaboration by several economists, the paper draws the attempts at European economic and monetary unification. Based on the report One Market, One Money (1990), the author concludes that the economists of the European Commission did not follow the OCA theory, but used several contemporary monetary and macroeconomic findings to construct the theoretical framework behind the EMU.

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