Endogénéité des critères d'une zone monétaire optimale: un réexamen

Endogeneity of the optimum currency area criteria: a re-examination

Gammadigbe Vigninou

MPRA Paper from University Library of Munich, Germany

Abstract: In the context of the theory of the optimum currency areas, Frankel and Rose [1998] have proposed the endogeneity thesis of the optimality criteria which they demonstrate by highlighting a significantly positive relation between business cycles synchronization and trade intensity of the monetary union countries. This demonstration admits limits and can lead to erroneous conclusions. It hides an important dimension of the endogeneity of the optimality criteria: the business cycles convergence. From the experience of three monetary unions, we first demonstrate that the endogeneity of the monetary unions can only and rigorously be verified afterwards. We demonstrate secondly that, in addition to a positive relation between business cycles synchronization and trade integration, a cyclical convergence of the economies over the period prior to the monetary union would make the thesis of endogeneity more plausible.

Keywords: Optimum currency area; Cyclical convergence; Trade integration; Asymmetric shocks (search for similar items in EconPapers)
JEL-codes: E32 F15 F33 (search for similar items in EconPapers)
Date: 2013-05
New Economics Papers: this item is included in nep-mac
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