As outlined by many authors, the methods to compute the Value at Risk (VaR) based on the classical approach do not take into account the very large price variations observed in financial markets. The historical method is subject to event risk, and it may miss some fundamental evolution of the...

The literature on the optimal currency area weighs up the static gains in terms of lower transaction costs against the costs associated with adjusting asymmetric shocks when nominal exchange-rate movements are not possible. Endogenous growth theory and the new economic geography show that, in...