Talk:Optimum currency area

needs a lot of work

For more info: http://www.nber.org/~wbuiter/scotland.pdf

This needs a lot of work. There needs be a mention of shocks as well. Also, I would characterize capital and labor mobility together. Price and wage flexibility are separate issues. There is actually a fairly long list of criteria which I'll dig out. Also needs to mentioned is why this is important. Namely, exchange rates are an adjustment mechanism and your taking that away. Bobarne 07:09, 5 December 2006 (UTC)

"By these criteria the European Union does not constitute an Optimal Currency Area"

Sorry, but there is tons of evidence that Europe is by no means an OCA. I will provide more background as soon as I get the time. — Preceding unsigned comment added by 2.215.46.143 (talk) 14:31, 17 February 2012 (UTC)

Why not? It satisfies all the criteria except different languages, but by that criteria neither Belgium, Switzerland, India nor Canada would be Optimal Currency Areas. TiffaF 08:19, 22 December 2006 (UTC)

"However it is hoped that the creation of the Euro will in itself help encourage the conditions enumerated by Mundell." This line is bullshit. THe euro has been created. - Mubli

Reads as an apologia for the Euro right now. —Preceding unsigned comment added by 204.65.71.45 (talk) 22:04, 20 June 2008 (UTC)

One problem with the flippant claim in the beginning that Europe as a whole is an optimum currency area - is it really optimum? Can it be proved that it wouldn't be slightly more economically efficient to drop Slovakia after all, or Portugal, or any individual country? I fact-tagged the claim. It's fine to make the claim if sources can be cited that support it. Tempshill (talk) 18:00, 16 July 2008 (UTC)

Ehmm.. Tiffaff, no way Europe is an OCA. This has well been established in academic literature from the start of the EMU onwards. Look for example at labour mobility. There are huge differentials between unemployment in lets say Spain and Germany. If labour mobility would be there, people would move. So, the question is not whether Europe is an OCA, but whether sharing a common currency would make Europe an OCA. See Krugman (argues that euro makes Europe less of an OCA) and the Delors report (opposite). Just my two cents. 137.120.3.218 (talk) 20:44, 20 December 2011 (UTC)

removed criticism section

I pulled out the entire (small) criticism section, since it was unreferenced. CRETOG8(t/c) 16:13, 26 February 2011 (UTC)

Dr. Masson's comment on this article

Dr. Masson has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:

https://docs.google.com/document/d/1i2V_PplgaiUZ1sS4ElfdNyzseMZzmgcYA4QITk6lTec/edit?usp=sharing

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• Reference : Thomas Kigabo RUSUHUZWA & Paul Robert MASSON, 2012. "Design and Implementation of a Common Currency Area in the East African Community," Working Papers tecipa-451, University of Toronto, Department of Economics.

ExpertIdeasBot (talk) 18:08, 27 June 2016 (UTC)

Dr. Angeloni's comment on this article

Dr. Angeloni has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:

The article could mention the role of asymmetric instisution for the transmission of monetary policy in a currency areas. For instance Faia, E. 2007 (Finance and International Business Cycle. Journal of Monetary Economics, vol. 54:4, 1018-1034.) examines the role of institutional differences in financial systems for the transmission of shocks within a currency area.

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Dr. Angeloni has published scholarly research which seems to be relevant to this Wikipedia article:

• Reference : Ignazio Angeloni & Michael Flad & Francesco Paolo Mongelli, 2005. "Economic and monetary integration of the new Member States - helping to chart the route," Occasional Paper Series 36, European Central Bank.

ExpertIdeasBot (talk) 18:33, 27 June 2016 (UTC)

Dr. Yetman's comment on this article

Dr. Yetman has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:

Most of the main arguments are there, but poor writing detracts in places. But my main comment is about the structure:

- I think that the "Models" section could also include the "OCA with international risk sharing" and "Self-fulfilling Argument" sections. - Then "European Union" and "United States" would fit better under a new heading of "Major Currency Unions" (although the former should be titled "Euro Area" to be more accurate).

- that just leaves "Keynesian" in the "Criticism" section, but it's mis-labelled. It's not a Keynesian critique per say, but more general than that: sharing a currency may lead to a loss of fiscal autonomy. This is likely to be an issue especially in economies that don't form optimal currency areas. This could be folded into the end of the "OCA with stationary expectations" section.

We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.

Dr. Yetman has published scholarly research which seems to be relevant to this Wikipedia article:

• Reference : Michael B. Devereux & Gregor W. Smith & James Yetman, 2009. "Consumption and Real Exchange Rates in Professional Forecasts," Working Papers 1195, Queen's University, Department of Economics.

ExpertIdeasBot (talk) 18:35, 27 June 2016 (UTC)