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European Monetary Union. Convergences and Divergences in an Optimum Currency Area

Author

Listed:
  • Mihaela NECULITA

    (Dunarea de Jos University of Galati, Romania)

  • Adrian MICU

    (Dunarea de Jos University of Galati, Romania)

Abstract

Theory stated that a country should adhere to a monetary area if that country has about the same development level as member states. Otherwise, less developed countries will bear more pronouncedly the effects of asymmetric shocks that may occur in an integration zone. The reality exceeded far and away what the famous economist proved, the case of Greece being the example that put us forward how well we must be prepared for joining the EMU, the European Union itself roughening the financial rules for potential candidates. This paper aims to carry out an analysis of divergences and convergences in the Monetary European Union based on research on the various theories available in the literature and on the current situations of EMU members and non-member countries.

Suggested Citation

  • Mihaela NECULITA & Adrian MICU, 2020. "European Monetary Union. Convergences and Divergences in an Optimum Currency Area," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 177-184.
    • Handle: RePEc:ddj:fseeai:y:2020:i:1:p:177-184
    DOI: https://doi.org/10.35219/eai1584040998
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    References listed on IDEAS

    as
    1. Axel A. Weber, 2011. "Challenges for monetary policy in the European Monetary Union," Review, Federal Reserve Bank of St. Louis, vol. 93(July), pages 235-242.
    2. Manuel Sanchis i Marco, 2014. "The Economics of the Monetary Union and the Eurozone Crisis," SpringerBriefs in Economics, Springer, edition 127, number 978-3-319-00020-6, September.
    3. Markus K. Brunnermeier & Harold James & Jean-Pierre Landau, 2016. "The Euro and the Battle of Ideas," Economics Books, Princeton University Press, edition 1, number 10828.
    4. Robert A. Mundell, 1960. "The Monetary Dynamics of International Adjustment under Fixed and Flexible Exchange Rates," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 74(2), pages 227-257.
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