Optimal Currency Areas: A Review of the Recent Literature
Robert Lafrance and
Pierre St-Amant ()
Staff Working Papers from Bank of Canada
This paper surveys the recent literature on optimal currency areas (OCAs). Topics that are covered include theoretical developments in the context of general-equilibrium models and empirical work on shocks asymmetry and adjustment mechanisms. Issues relating to the endogeneity of OCA criteria, the role of exchange rate flexibility in promoting greater macroeconomic stability, and the links between productivity and the exchange rate are also surveyed. We conclude with suggestions for future research.
Keywords: Exchange; rate; regimes (search for similar items in EconPapers)
JEL-codes: E42 F33 (search for similar items in EconPapers)
Pages: 39 pages
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Persistent link: https://EconPapers.repec.org/RePEc:bca:bocawp:99-16
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