The OCA Theory and Its Empirical Application for the EMU

• Authors: Joanna Tyrowicz

Title variants

PL

The OCA Theory and Its Empirical Application for the EMU

• Languages of publication: EN

Abstracts

EN

The paper probes the notions of an “optimum currency area” (OCA) and “business cycle synchronization” in the context of convergence within the European Monetary Union (EMU). Analyzing the latest literature in this area, the author concludes that most of the measures currently used and promoted ignore the key advantages and disadvantages of an optimum currency area. At the same time, the paper attempts to apply a common tool of gravity equation to test the possible impact of the EMU on trade patterns among EU member states. By implementing a traditional notion of gravity equation, the author demonstrates that, as far as international trade is concerned, it is possible to move trade flows from non-EMU countries to those using the single European currency.

Keywords

EN

optimum currency area; European Monetary Union; gravity equation; business cycle synchronization

• Publisher: Szkoła Główna Handlowa w Warszawie. Kolegium Analiz Ekonomicznych
• Journal: Gospodarka Narodowa. The Polish Journal of Economics
• Year: 2007
• Volume: 216
• Issue: 5-6
• Pages: 45-60

Dates

published

2007-06-30

Contributors

author

Joanna Tyrowicz

Identifiers

DOI

10.33119/GN/101386