TY - JOUR
T1 - Monetary unions and endogeneity of the OCA criteria
AU - Akiba, Hiroya
AU - Iida, Yukihiro
PY - 2009
Y1 - 2009
N2 - 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.
AB - 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.
KW - Endogeneity
KW - Monetary Union
KW - OCA
UR - http://www.scopus.com/inward/record.url?scp=77950731872&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=77950731872&partnerID=8YFLogxK
U2 - 10.1080/12265080802692795
DO - 10.1080/12265080802692795
M3 - Article
AN - SCOPUS:77950731872
VL - 38
SP - 101
EP - 116
JO - Global Economic Review
JF - Global Economic Review
SN - 1226-508X
IS - 1
ER -