scholarly journals Sustainability of Enlarging EMU: Towards Endogeneity of OCA Criteria or Asymmetry of Shocks?

2015 ◽  
Vol 14 (2) ◽  
pp. 99-131
Author(s):  
İmre ERSOY
Keyword(s):  
Oca Criteria

scholarly journals Pembentukan Mata Uang Tunggal Kawasan ASEAN

2020 ◽  
Vol 7 (2) ◽  
pp. 152
Author(s):  
Nurul Cholifah ◽  
Diah Wahyuningsih
Keyword(s):  
Exchange Rate ◽  
Financial Integration ◽  
Bilateral Trade ◽  
Positive Influence ◽  
Single Currency ◽  
Output Data ◽  
Currency Area ◽  
Local Currency ◽  
Asean Countries ◽  
Oca Criteria

Financial integration is the last step that can be done to achieve economic integration. One condition that must be met before the implementation of financial integration is the existence of the optimal currency area (OCA) criteria. The purpose of this study: 1) to find out the closeness of the currency to changes in the bilateral exchange rate as a supporter in the possibility of forming a single currency in the ASEAN region, 2) to analyze the chosen anchor currency which has a positive influence (appreciation) on the local currency of the ASEAN region as a currency single money region. This study uses annual real output data, size of GDP ratio, bilateral trade, differences in the composition of trade, and the exchange rate throughout of 1995-2018 period. The analytical method used is panel data test. The results showed that the currencies of ASEAN countries did not yet have the closeness of forming a single currency in the ASEAN region. Meanwhile, to determine the appropriate anchor currency to be used as a shared currency, namely SGD (Singapore Dollar) empirically has a positive influence (appreciation) in the ASEAN region compared to RMB, JPY, Euro, or USD. Therefore SGD can be proposed as an anchor currency for ASEAN countries.

Should the UK Join Emu?

2000 ◽  
Vol 171 ◽  
pp. 70-81 ◽  
Author(s):  
Michael Artis
Keyword(s):  
Optimum Currency Area ◽  
The Core ◽  
Currency Area ◽  
Final Verdict ◽  
The Uk ◽  
Oca Criteria ◽  
Optimum Currency

This article considers the economic case for UK membership of EMU. Traditional optimum currency area (OCA) analysis provides only a weak case for membership: the UK is located among the periphery and not in the core. Considerations of the possible costs of isolation (the risks of trade discrimination and the dangers of a volatile currency) together with some pertinent qualifications of OCA analysis (the possible endogeneity of the OCA criteria) serve to strengthen the case for joining. Whilst it is not overwhelming, the final verdict is positive.

Monetary Unions and Endogeneity of the OCA Criteria

2009 ◽  
Vol 38 (1) ◽  
pp. 101-116 ◽  
Author(s):  
Hiroya Akiba ◽  
Yukihiro Iida
Keyword(s):  
Monetary Unions ◽  
Oca Criteria

scholarly journals China’s Dollar-linked Hong Kong during the Global Crisis

2019 ◽  
Vol 38 (67) ◽  
Author(s):  
Chee-Heong Quah
Keyword(s):  
Hong Kong ◽  
Currency Board ◽  
The Past ◽  
Property Prices ◽  
The Us ◽  
Apparent Reason ◽  
Trade Competitiveness ◽  
Oca Criteria ◽  
Optimum Currency ◽  
Exchange Regime

This paper explores the domestic price level and trade competitiveness of Hong Kong in addition to the compatibility of this dollar-based currency board to the criteria inspired by the optimum currency area (OCA) theory. On price and competitiveness, findings point out that during the turmoil Hong Kong had not performed as well as that in the past and an apparent reason for this is the inflows of hot capital from abroad especially of the US that fuelled rising property prices. On conformity to the OCA criteria, the findings broadly corroborate the fixed exchange regime with the US as the monetary anchor country but at the same time China appears as a prospective contender to US as the monetary anchor. In the longer run, amidst the prolonged economic and monetary weaknesses in the US plus the emergence of renminbi as a global currency, Hong Kong might as well unify its exchange rate with the Chinese money.

scholarly journals MACROECONOMIC SHOCKS ASYMMETRY: SEE AS AN OPTIMAL CURRENCY AREA

2013 ◽  
Vol 6 (2) ◽  
Author(s):  
Gjorgji Gockov ◽  
Kiril Jovanovski
Keyword(s):  
Currency Union ◽  
Optimum Currency Area ◽  
Common Currency ◽  
Macroeconomic Policies ◽  
Macroeconomic Shocks ◽  
Currency Area ◽  
Asymmetric Shocks ◽  
Key Variables ◽  
Oca Criteria ◽  
Optimum Currency

This paper has the goal to evaluate the existence of asymmetry of macroeconomic shocks between the SEE countries. It focuses on the Optimum Currency Area (OCA) theory to determine the readiness of any country to participate in a monetary union. The main goal of the study is to evaluate the OCA criteria for Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Greece, Macedonia, Montenegro, Kosovo, Serbia and Slovenia. The focus will be on the trade and financial links among these countries, the harmonization of business cycles and the similarities in the inflation movements. Going through often cited criteria for a successful currency union the paper will try to give conclusion for the possibilities to use the benefits of the OCA in the region.The paper will contribute with its assumptions that will be used in assessing the feasibility of a common currency area (CCA). That assumption will focus on the existence of the asymmetric shocks that will increase the costs of forming a CCA in SEE countries. In this paper, the comparative analysis of the key variables, policies and recommendations, gives profound basis for making conclusions related to the different macroeconomic policies behavior in terms of bad economic performance. Identification of the imbalances, national or international should give an answer for the dilemmas about the consistency of certain measure in terms of OCA.

Is Latin America an Optimum Currency Area? Evidence from a Structural Vector Autoregression Analysis

2012 ◽  
pp. 43-68
Author(s):  
Foresti Pasquale
Keyword(s):  
Latin America ◽  
Latin American ◽  
Policy Coordination ◽  
Monetary Integration ◽  
Trade Integration ◽  
Structural Vector Autoregression ◽  
Speed Of Adjustment ◽  
Low Degree ◽  
Oca Criteria ◽  
Optimum Currency

This paper evaluates the advisability of a monetary union in Latin America applying the theory of optimum currency areas (OCA). The analysis is based on the traditional OCA criteria and it suggests that there is no evidence for any monetary integration in Latin America even at a sub-regional level. Latin American countries have evidenced a low degree of trade integration and asymmetric co-movements among their shocks. Moreover, substantial differences in the speed of adjustment and in the size of shocks are found. Hence, higher policy coordination seems to be necessary before starting any economic integration process in Latin America.

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