Theory of Optimum Currency Areas and Monetary Integration in the European Union
Establishing the Economic and Monetary Union (EMU) with a common currency, i.e. the Euro means the consolidation of all integration processes within the European Union. The currency integration was accompanied by the process of financial and economic integration to make the entire zone more coherent economically and organisationally. However, the current financial crisis has demonstrated a number of disadvantages and imperfections of the Eurozone and the whole EMU in terms of economic integration and convergence. This phenomenon has been triggered by moving away from the initial assumptions behind creating the EMU known as an optimum currency area (OCA). Thus, the previous actions taken by the EMU countries to save the integration of the Eurozone seem to be very diffi cult and now the EMU states and the entire EU should take comprehensive and daring actions in line with the convergence and OCA rules. (original abstract)
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