Optimum Currency Area Criteria in the Greece

Creation of a monetary union in any region, regardless of the structure and level of development among countries, carries along certain costs and benefits. This paper explains Mundell’s concept of Optimum Currency Area and criteria that are needed to achieve it. Viewed through the prism of these criteria the EMU is currently far from achieving the OCA confirming the current crisis in Greece and other PIIGS countries. The example of Greece and shortcomings that contributed to its current crisis represents the biggest cost and a break-even point for the future of the monetary union. However, it is encouraging that Greece is not alone in its problems, since various funds for help have been established in a relatively short period of time. The reason for this is certainly a huge cost if any country should leave the union and the spillover effect that it would cause. Certainly serious transformations can be expected and the result should be a stronger union with better control from supra-national level.