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On the Prospects of a Currency Union between the USA and the Euro Area

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  • A. Oleinov

Abstract

The article examines the welfare implications of the USA and the Euro area joining a currency union as opposed to operating in a flexible exchange rate regime. The condition for the USA and Euro area to create a monetary union is derived from the Barro–Gorden model and the theoretical model of currency union proposed by A. Dixit that is a direct generalization of Barro–Gordon model. This condition is estimated on the USA and Euro area macroeconomic data from 1980 to 2004.

Suggested Citation

  • A. Oleinov, 2006. "On the Prospects of a Currency Union between the USA and the Euro Area," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 6.
    • Handle: RePEc:nos:voprec:y:2006:id:1747
    DOI: 10.32609/0042-8736-2006-6-35-46
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