In this paper, the author distinguishes the main ideas of the theory of Optimal Currency Area (OCA). This work explains the main features, which help to understand the differences between an Optimum Currency Area and Currency Union. This paper also itemizes main benefits and costs for countries...

While it is painfully clear that the ’ever closer’ monetary and financial union in the EU has run into serious trouble there has been very little study of the degree to which the countries have become similar or different in their economic growth dynamics. This paper therefore goes beyond...

The euro area is experiencing a sovereign debt crisis; as a result, the foundations of its monetary union have been shattered. This crisis, which is an extension of an international financial crisis, shows that the European Union is not an optimum currency area. Robert Mundell’s work remains...

Using empirical tests on 52 industrial sectors, this paper shows that industrial agglomeration has increased significantly in Europe since 1972. However, important differences can be observed between the sectors. These differences suggest that discrepancies between EU countries - which are...

This study investigates the degree of economic integration that the group of selected South East European countries have achieved with the euro area. The evidence of this study suggests that all four selected South East European economies are in sync with the euro area cycle, and respectively...

This study estimates modified Taylor reaction functions which tackle the real rather than the nominal interest rates for the Euro area as a whole, and separately for the individual member states, before the onset of the current sovereign debt crisis. We show there are significant differences...