Monetary unions and endogeneity of the OCA criteria

Hiroya Akiba*, Yukihiro Iida

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    2 Citations (Scopus)


    This article examines an endogeneity issue within the Optimum Currency Area (OCA) theory. According to the cost-benefit analysis, we found that there are the upper and the lower bounds in the degree of monetary integration for a monetary union to be created. We also found that a country may secede from the monetary union, depending on its degree of integration. A country may also secede when production specialization is facilitated with monetary integration within a framework of the "OCA line". We also consider the endogeneity of the "OCA Index", and applied our analysis to the optimum number of world currencies.

    Original languageEnglish
    Pages (from-to)101-116
    Number of pages16
    JournalGlobal Economic Review
    Issue number1
    Publication statusPublished - 2009


    • Endogeneity
    • Monetary Union
    • OCA

    ASJC Scopus subject areas

    • Economics, Econometrics and Finance(all)
    • Business and International Management
    • Political Science and International Relations


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