Monetary unions and endogeneity of the OCA criteria

Hiroya Akiba, Yukihiro Iida

    Research output: Contribution to journalArticle

    2 Citations (Scopus)

    Abstract

    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
    Volume38
    Issue number1
    DOIs
    Publication statusPublished - 2009

    Fingerprint

    monetary union
    currency
    cost-benefit analysis
    specialization
    Endogeneity
    Monetary union
    Optimum currency area
    Monetary integration

    Keywords

    • Endogeneity
    • Monetary Union
    • OCA

    ASJC Scopus subject areas

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

    Cite this

    Monetary unions and endogeneity of the OCA criteria. / Akiba, Hiroya; Iida, Yukihiro.

    In: Global Economic Review, Vol. 38, No. 1, 2009, p. 101-116.

    Research output: Contribution to journalArticle

    Akiba, Hiroya ; Iida, Yukihiro. / Monetary unions and endogeneity of the OCA criteria. In: Global Economic Review. 2009 ; Vol. 38, No. 1. pp. 101-116.
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