Vecchie e nuove teorie delle aree monetarie ottimali

Pompeo Della Posta

Discussion Papers from Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy

Abstract: The paper surveys old and new theories of optimum currency areas by following a unifying "logical" rather than "chronological" approach. The fall of credibility theory as the "new" theory of optimum currency areas obliged to go back to the "old" criteria while focusing, however, also on supply shocks. Moreover, the conclusions reached by the theory of self-fulfilling speculative attacks stress the difference between irrevocably fixed exchange rates and monetary union. As a consequence, I suggest referring to the theory of optimum monetary rather than currency areas. Finally, the difficulty of these criteria to explain the desire of peripheral countries to adhere to a monetary union (as in the case of the EMU), obliges to abandon the static framework. By considering a dynamic approach, it is also possible to interpret political reasons, often deemed to be crucial and considered separately from the economic ones, as referring to the economic, long term, benefits resulting from monetary unification.

Keywords: Optimum; Currency; Areas (search for similar items in EconPapers)
JEL-codes: F33 F36 (search for similar items in EconPapers)
Date: 2003-06-01
Note: ISSN 2039-1854
References: Add references at CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:pie:dsedps:2003/5

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