Details

Autor(en) / Beteiligte

• Jespersen, Jesper

Titel

‘Optimal’ Currency Area: What Does It Mean?

Ist Teil von

• The Euro, 2016, p.9-21

Ort / Verlag

Switzerland: Springer International Publishing AG

Erscheinungsjahr

2016

Link zum Volltext

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• The original theory of an ‘Optimal Currency Area’ was presented by Mundell (A theory of optimal currency areas. Am Econ Rev 51: 657–665, 1961). Conclusions were drawn using a neoclassical general equilibrium framework. This theory was employed when the Euro-monetarists, dominating the Delors-Commission (Report on economic and monetary union in the European community, Office for Official Publications of the EC, Luxemburg, 1989), recommended the establishment of a European Monetary Union, an independent European Central Bank, defined convergence criteria and the rules of public sector balanced budget. The theory has failed to foresee the current Euro crises. Alternatively, Euro-realistic theory, which takes analytical inspiration from Keynes’s macroeconomic methodology by using consistent stock-flow modelling, would have led to other and much less optimistic conclusions with regard to the outcome of imposing a common currency on the EU countries.