This article estimates optimum currency area (OCA) index for the EU New Member States (NMSs). We find that, as compared to the current Euro area countries, the NMSs meet OCA conditions largely and in this respect, are likely good candidates for Euro adoption.

This paper estimates the medium-term determinants of the bilateral exchange rate variability and exchange rate pressures for 20 developed countries in the 1990s. The results suggest that optimum currency area criteria explain the dynamics of bilateral exchange rate variability and pressures, to...