Optimal Monetary Areas and European Experience

Authors

  • Bogdan Georgescu The Bucharest Academy of Economic Studies
  • Vasile Ionel Popescu The Bucharest Academy of Economic Studies

Keywords:

economy, currency, monetary union, fiscal transfers, workforce mobility

Abstract

From historical point of view, each country used to have its own currency, but from economic point of view, we can ask the following question: why does a single monetary area have to correspond with the space of a nation?

Practically, national currencies are useful because they make trade and financial transactions easier. The introduction of a single currency in a certain space must take into account certain criteria, because the space for a single currency is not infinite. The Central Bank of the area cannot react to local changes, therefore some costs will appear if we use a single currency.

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Published

2014-12-01

How to Cite

Georgescu, B., & Popescu, V. I. (2014). Optimal Monetary Areas and European Experience. International Journal of Economic Practices and Theories, 4(6), 1024-1029. Retrieved from http://ijept.eu/index.php/ijept/article/view/Optimal_Monetary_Areas_and_European_Experience

Issue

Vol. 4 No. 6 (2014)

Section

Articles

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